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The probability of default on a 1 year loan is 6.5% and the T-bill rate is 2.5%. If default occurs the LGD is 65%. What

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The probability of default on a 1 year loan is 6.5% and the T-bill rate is 2.5%. If default occurs the LGD is 65%. What is the appropriate contract rate on the loan? (answer to the nearest basis point and put your answer in bps.)

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