This paper circulates around the core theme of Nu-Mode Fashions Inc. manufactures quality women’s wear together with its essential aspects. It has been reviewed and purchased by the majority of students thus, this paper is rated 4.8 out of 5 points by the students. In addition to this, the price of this paper commences from £ 99. To get this paper written from the scratch, order this assignment now. 100% confidential, 100% plagiarism-free.
Nu-Mode Fashions Inc. manufactures quality women’s wear and needs to borrow money to get through a brief cash shortage. Unfortunately, sales are down, and lenders consider the firm risky.Calculate the rate Nu-Mode should expect to pay on a two-year loan. Assume a 4.2% default risk premium and liquidity and maturity risk premiums of 3/4% due to the longer term. Inflation is expected to be 4.5% over the next 12 months and 5% in the loan’s second year. Economists believe the pure interest rate is currently about 3½%. Round your answer to two decimal places
