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42. Assume that B = $200 000, r = 1 year, i = 7 per cent, d = 0.9, N(h1) = 0.174120 and N(h2) =

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42. Assume that B = $200 000, r = 1 year, i = 7 per cent, d = 0.9, N(h1) = 0.174120 and N(h2) = 0.793323. Using Moody's KMV Credit Monitor Model, what is the required risk premium on the loan (round to two decimal places)? A. 0.13 per cent B. 0.91 per cent C. 1.64 per cent D. 6.30 per cent

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