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Assume that B = $200 000, r= 1 year, i = 7%, d = 0.9, N(hi) = 0.174120 and N(H2) = 0.793323. Using Moody's KMV

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Assume that B = $200 000, r= 1 year, i = 7%, d = 0.9, N(hi) = 0.174120 and N(H2) = 0.793323. Using Moody's KMV Credit Monitor model, what is the required risk premium on the loan (round to two decimal places)

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