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A bank has made a loan charging a base lending rate of 8 percent. It expects a probability of default of 2 percent. If the

A bank has made a loan charging a base lending rate of 8 percent. It expects a probability of default of 2 percent. If the loan is defaulted, the bank expects to recover 80 percent of its money through the sale of its collateral. What is the expected return on this loan? 7.6
Input your answer as a percentage with 2 decimal places, without the %. For example, 6.27.

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