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A bank is planning to loan a startup $100 for 1 year. If there is a 75% chance that the startup will not be able

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A bank is planning to loan a startup $100 for 1 year. If there is a 75% chance that the startup will not be able to pay back the money to the bank and a 25% chance that the startup will be able to pay back the money to the bank with interest. The startup firm assets-in-place (collaterals) worth $100. What interest rate does the bank need to charge on this loan in order to earn a 5% expected return

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