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A bank charges a base lending rate of 10% for a loan. The expected probability of default for the loan is 5%. Assume no recovery
A bank charges a base lending rate of 10% for a loan. The expected probability of default for the loan is 5%.
Assume no recovery if the loan is defaulted, what is the expected return on this loan?
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Foundations Of Real Estate Financial Modelling
Authors: Roger Staiger
2nd Edition
1138046183, 978-1138046184
