Dear Tutor,

Could you please help me to find out the answer, I am so lost with this type of question. Could you please provide as much detail as possible.

Thank you so much !!!!

Q3. Whas attracted a new client: Dodgy Aeronautical Fusion Corporation. Whas provided Dodgy A.F. Corp with both: I A 5-yeartem1 loan in the amount of $12 miilion - A performance-related guarantee in the amount of $321 million You know that periormance-related guarantees have a credit-conversion factor of 50%. Goody's, a credit rating agency, has assigned a Dodgy A.F. Corp a rating of "B-', which places them in External Credit Rating Grade 5. You have the following extract from the regulator's guide to risk weightings: EXTERNAL CREDIT RATING GRADE 1 2 3 4 Reserve Bank ofAustraiia 9i": Commonwealth govemment ofAustraJia CDUNTEFIPAHTY State governments St Territories Commercial bani-ts [oBmth maturity} 1DD9'5 1DD9'E. 15D9'i': Assuming Basel ||| requirements. what is the minimum CEi'1 capital amount [in $miilions] required for Willi to support their total exposure to Dodgy A.F. Corp