Question
American Blossom management is planning to make a $2.6 million loan to a French firm. Currently, LIBOR is at 1.0 percent. American management considers a
American Blossom management is planning to make a $2.6 million loan to a French firm. Currently, LIBOR is at 1.0 percent. American management considers a default risk premium of 0.75 percent, a foreign exchange rate risk premium of 0.25 percent, and a country risk premium of 0.13 percent to be appropriate for this loan. What is the loan rate charged by American Blossom?
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Quantitative Financial Analytics The Path To Investment Profits
Authors: Edward E Williams, John A Dobelman
1st Edition
9813224258, 978-9813224254
