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25. Calculate the promised return (k) on a loan if the base rate is 13 percent, the risk premium is 2 percent, the compensating balance

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25. Calculate the promised return (k) on a loan if the base rate is 13 percent, the risk premium is 2 percent, the compensating balance requirement is 5 percent, fees are y percent, and reserve requirements are 10 percent. 26. What is the expected return on this loan if the probability of default is 5 percent

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