Quick Loans Co uses the following rating scheme to classify the riskiness of its customers.

Risk Class

Prime .05%

High grade 1.0%

Upper medium grade 1.5%

Lower medium grade 2.0%

Speculative: Non-investment 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 3.5%.

The bank offers an annual rate of 15.07% to a customer. What is the risk class of this customer?

A.Upper medium grade

B.Substantial risks

C.Speculative: Non-investment grade

D.Lower medium grade

E.Speculative: Highly

F.High grade