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A bank has made a loan to a firm. The terms include a base rate of 8%, a risk premium of 3%, an origination fee

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A bank has made a loan to a firm. The terms include a base rate of 8%, a risk premium of 3%, an origination fee of .1875%, and a 9% compensating balance requirement. Required reserves at the Federal Reserve are 6%. What is the stated rate on this loan? 11% 12% 11.19% 8.19%

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