Question
Calculate the promised return (k) on a loan if the base rate is 13 percent, the risk premium is 2 percent, the compensating balance requirement
Calculate the promised return (k) on a loan if the base rate is 13 percent, the risk premium is 2 percent, the compensating balance requirement is 5 percent, fees are 12 percent and reserve requirements are 10 percent.
What is the expected return on this loan if the probability of default is 5 percent?
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Essentials Of Statistics For Business And Economics
Authors: David Anderson, Thomas Williams, Dennis Sweeney, Jeffrey Cam
7th Edition
1305081595, 978-1305081598
