Question: Assume a borrower has a $ 2 0 0 , 0 0 0 loan balance. It is estimated that the borrower has a probability of

Assume a borrower has a $200,000 loan balance. It is estimated that the borrower has a probability of default of 3%. The projected loss-given-default is 45%. What is the expected loss rate? a.1.35% b. $27,000 c. $2,700 d.13.5%

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