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A lender requires an effective annual interest rate of 7% assuming no default risk on a loan to be repaid with a single payment
A lender requires an effective annual interest rate of 7% assuming no default risk on a loan to be repaid with a single payment at the end of 8 years. Find the effective annual interest rate the lender should offer if it is expected that 15 out of every 1000 borrowers will default but with a 45% partial recovery rate. Answer at least with 5 decimal points Answer:
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Real Estate Finance and Investments
Authors: William Brueggeman, Jeffrey Fisher
14th edition
73377333, 73377339, 978-0073377339
