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The Bank of Fast Loans uses the following rating scheme to classify the riskiness of its customers. The bank's pure rate of interest is 2%

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The Bank of Fast Loans uses the following rating scheme to classify the riskiness of its customers. The bank's pure rate of interest is 2% and the inflation premium is 3.5%. The bank offers an annual rate of 6.63% to a customer. What is the risk class of this customer? A. Substantial risks B. Speculative: Highly C. High grade D. Speculative: Non-investment grade E. Upper medium grade F. Lower medium grade

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