QUESTION 9 Use the following information for this and the next question. The Bank of Loans uses the following rating scheme to classify the riskiness of its commercial lending customers. Risk Class Risk Premium () Prime .05 High grade 1.0 Upper medium grade 1.5 Lower medium grade 2.0 Speculative: Noninvestment grade 4.0 Speculative: Highly 6.0 Substantial risks 9.0 Extremely speculative 12.0 The bank's pure rate of interest is 2% and the inflation premium is 3%. What rate would the bank offer a customer who is in the lower medium grade risk class? "\ 6.11% A. 6.64% "N 9.26% "'1 7.16% 7 points Save