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A bank has estimated that the marginal cost of raising funds is 5%, their default risk premium on a loan is 1.5% and that they

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A bank has estimated that the marginal cost of raising funds is 5%, their default risk premium on a loan is 1.5% and that they want a profit margin of 2%. What is the interest rate this bank will charge if they use the cost plus pricing model? A 8.5% 8.9.5% O C.9% O D.12%

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