As a banker, you try to evaluate the credit risk of a $$10$ million loan requested by National Bull Riders $($NBR$)$ which has a BB credit rating. The duration of the loan is $4$ years. The expected maximum increase in interest rate for BB$-$rated bonds is estimated to be $5\mathrm{.}5\%,$ and the current average interest rate for BB$-$rated bonds is $12\%.$ Your bank charges $0\mathrm{.}4\%$ for the fees and the spread over the cost of funds to the bank is $1\%.$ What is the loan risk?