8-101 What should be the rate on the two-year loan in order for the value of the equity to remain at $10 million? Assume the interest rates for all other instruments decreased by 1 percent.
A)5.50 percent.
B)6.19 percent.
C)4.15 percent.
D)6.54 percent.
E)7.25 percent.

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The Answer of 8-101 What should be the rate on the two-year loan in order for the value of the equity to remain at $10 million? Assume the interest rates for all other instruments decreased by 1 percent.
A)5.50 percent.
B)6.19 percent.
C)4.15 percent.
D)6.54 percent.
E)7.25 percent.

8-101 What Should Be the Rate on the Two-Year Loan