Question 2 Working as a credit ocer, you are examining a loan application by a corporate customer of your bank. Based on your collected information on the repayments of similar borrowers, you estimate that this borrower has a full-repayment probability of 90%, default probability of 10%, and the losses given default {LGD} distribution of: Recovery: 80% of principal Half of principal Total loss Probability: 60% 3 0% 10% Ifyour cost of funds is 5%, what interest rate are you going to charge on the loan