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A bank is charging a rate of 12.00% on a loan, and the probability of default is 5% with a 60% salvage value.What is the
A bank is charging a rate of 12.00% on a loan, and the probability of default is 5% with a 60% salvage value.What is the highest required return such that this loan would be made?
10.05%
10.64%
9.17%
9.76%
9.00%
10
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