1. Assume the following information:

• The repayment value (CDRC ratio) is 0.95.
• The loan-to-value ratio is 0.45
• The operating income is $320,000
• The operating expense is $400,000
• Total Assets are $1,500,000
• Total Liabilities are $350,000
• Current Assets are $120,000
• Current Liabilities are $150,000
• Return to Assets is 5.5%

. tell me which interest rate would be assigned you must demonstrate how you reached your decision