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QUESTION 7 (3) Calculate the EAD {1} and LGD {2} given the information below Loan amount R775 000 Collateral to loan R180 000 Interest rate

QUESTION 7 (3) Calculate the EAD {1} and LGD {2} given the information below Loan amount R775 000 Collateral to loan R180 000 Interest rate 8,5% PD 24% Loan amount outstanding R525 000 Loan term remaining 4 years Estimated recovery rate 68%.

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