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Part 1 | Attempt 1/1 for 10 pts. Confidence Bank has made a loan to Risky Corporation. The loan terms include a default risk-free borrowing
Part 1 | Attempt 1/1 for 10 pts. Confidence Bank has made a loan to Risky Corporation. The loan terms include a default risk-free borrowing rate of 8 percent, a risk premium of 3.5 percent, an origination fee of 0.13 percent, and a 10 percent compensating balance requirement. Required reserves at the Fed are 10 percent. What is the expected or promised gross return on the loan? (Please enter your answer in percentage with 3 digits after the decimal point!) 11+ decimals Submit
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