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A bank extends a 10 year fixed rate loan and charges 14% per annum. Currently 10 year Treasury Bonds are yielding 6.5 %. What is

A bank extends a 10 year fixed rate loan and charges 14% per annum. Currently 10 year Treasury Bonds are yielding 6.5 %. What is the credit risk premium (pr) if the recovery rate is 60%?

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