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ion. A Risk to return trade-off A grade assigned to a borrower to determine the level of credit risk B Penalties C Credit rating D
ion. A Risk to return trade-off A grade assigned to a borrower to determine the level of credit risk B Penalties C Credit rating D Loan pricing inputs E Risk grades A fee that's payable if the loan is paid before its term Factors that affect the cost of loans, including probability and loss given defaults Different categories created for differently rated borrowers The principle that a higher risk loan will have a higher interest rate applied
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