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Question 26 LNK Corporation has a $200,000 loan that will mature in two years. The risk-free interest rate is 4 percent. The standard deviation in
Question 26 LNK Corporation has a $200,000 loan that will mature in two years. The risk-free interest rate is 4 percent. The standard deviation in the rate of change in the underlying asset's value is 14 percent, and the leverage ratio for LNK is 0.61 (61 percent). The value for N(h) is 0.0047, and the value for N(h) is 0.9918. What is the current market value of the loan? $301,047. $200,000. $184,532. $199,901. 1 pts O $216,550. Question 27 Assume the same information as in the previous question . What is the required yield on this risky loan? 4.025 percent. 4.00 percent. 3.975 percent. 0.025 percent. None of the options. 1 pts
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