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Friendly Finance Company wishes a yield rate of 15%, but charges 22% on loans repayable with a single payment at the end of one year.

Friendly Finance Company wishes a yield rate of 15%, but charges 22% on loans repayable with a single payment at the end of one year. What default rate is being assumed?

Edit: default rate is the chance that the loan does not get paid off, or that someone will default on the payment. This question is in section "Contingent Payments" if that helps

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