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jasper inc is looking for a five-year term loan of $3 million. Its bank is willing to make the loan. Because of its credit history,

jasper inc is looking for a five-year term loan of $3 million. Its bank is willing to make the loan. Because of its credit history, the firm will have to pay a premium of 1.75 percent for the default risk and another 0.25 percent for maturity risk. The current prime rate is 6.5 percent. The loan rate Jasper must pay on this bank loan is 4%. (True/False)

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