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In: Finance

You are the CFO of a publicly traded corporation, and as a part of your responsibilities...

You are the CFO of a publicly traded corporation, and as a part of your responsibilities you arrange loans for various short term and long term funding requirements. The investment bank who provides those loans has submitted to you a list of terms.
(Please show work on this problem, posted this work twice and two experts gave different anssers. If you answer the same as one of the other experts I will know that this answer will be the right one. Pleade show your work***)

Pleade show your work*** You are requesting a $8,000,000 loan with a term of 4 months for short term financing needs, payroll, Christmas bonuses to employees, accounts payable, etc., the investment bank will require your firm to repay $8,110,000 at the end of those four months. What is the APR and EAR?
Pleade show your work*** You had also requested terms for a 7 year loan for the purpose of purchasing new machinery and equipment. For $19,000,000 today, the investment bank requires $23,550,000 at the end of seven years. What is the interest rate?
Pleade show your work*** The CEO is also considering building a new factory, and he has asked you to inquire about the rate on a $32,000,000 loan for 30 years. The bank has informed you that for $32,000,000 now, your firm would need to repay the $32,000,000 at the end of 30 years, but also make an annual interest payment of $1,600,000 each year. What is the interest rate?
Please sketch the graph or just place an outline of what it looks like**** Sketch a graph of the yield curve which your company faces for their costs of borrowing.

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