d. A bank has granted an unsecured loan to a manufacturing company with a notional amount of GHC1200,000. There is a 2.5% chance that the firm will default over the life of the transaction. According to the calculations by the credit department, there is a recovery rate of 65% from a bankruptcy court in case of default. If the bank is required to hold a credit reserve equal to the expected (average) credit loss, how much reserve should be held? 10 marks