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A bank has extended a $200,000, 1-year loan at an interest rate of 9% with a BBB rating. Historical data indicate that the probability of

A bank has extended a $200,000, 1-year loan at an interest rate of 9% with a BBB rating. Historical data indicate that the probability of this loan defaulting in 1 year is 5%, and the recovery rate for this type of loan is 60%. All rates are stated as decimals. What is the expected credit loss? Round to the nearest dollar.

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