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Assume that the loan exposure is $8,000,000, the spread is 1%, fees are 0.5%, costs are $80,000, the loan duration is 9 years, and the

Assume that the loan exposure is $8,000,000, the spread is 1%, fees are 0.5%, costs are $80,000, the loan duration is 9 years, and the change in credit risk premium is 5%. a. Calculate the RAROC b. Pr...

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