As we discussed, there are four main factors that to go into loan pricing for financial institutions. As a bank manager, you are most concerned

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As we discussed, there are four main factors that to go into loan pricing for financial institutions. As a bank manager, you are most concerned with the fourth factor that is the profit margin. Explain how the inflation and the interest rates are important when calculating the potential profit margin. would any of these factors change if the loan is a fixed interest rate versus a variable interest rate?