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American Ivanhoe management is planning to make a $1.8 million loan to a French firm. Currently, LIBOR is at 1.3 percent. American management considers a

American Ivanhoe management is planning to make a $1.8 million loan to a French firm. Currently, LIBOR is at 1.3 percent. American management considers a default risk premium of 1.10 percent, a foreign exchange rate risk premium of 0.20 percent, and a country risk premium of 0.13 percent to be appropriate for this loan. What is the loan rate charged by American Ivanhoe?

Loan rate charged enter the loan rate charged in percentages %

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