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Question 4 1.5 pts Confidence Bank has made a loan to Risky Corporation. The loan terms include a default risk-free borrowing rate of 8%, a

Question 4 1.5 pts Confidence Bank has made a loan to Risky Corporation. The loan terms include a default risk-free borrowing rate of 8%, a risk premium of 3%, an origination fee of 0.1875%, and a 9% compensating balance requirement. Required reserves at the Federal Reserve are 6%. What is the expected or promised gross return on the loan? 12.22% 11.19% 12.00% 17.00% 11.00%

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