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Question 1 : The following information is given about a Loan: P or probability of repayment 9 3 % ( 1 P ) Probability of
Question : The following information is given about a Loan:
P or probability of repayment
P Probability of default
LGD or Loss Given Default
LGD or Recovery Amount
Rf or riskfree rate
RP or Risk Premium
Assuming the Lender wants a risk premium of what will be the rate charged by the lender?
Input your answer to decimal places, enter as
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