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Bank K is about to sign a loan agreement with a mining company. The current LIBOR rate is 8 percent. The risk premium for the

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Bank K is about to sign a loan agreement with a mining company. The current LIBOR rate is 8 percent. The risk premium for the company has been estimated as 3 percent and the origination fee will be 0.1875 percent. The bank will be requesting a 9 percent compensating balance requirement. If the reserve requirement is 6 percent, what is the promised gross return on the loan

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