There is a borrower who wants to run a project that requires an investment of $100. The project is expected to succeed with 90 percent chance and get a gross revenue of y=\$150 When the project fails, the borrower gets the limited liability protection . On the lender's side, gross cost of lending is $100 as there is no overhead cost. Using the information provided , compute the threshold interest rate that the lender should charge to break even?

2 ) Now suppose that the borrower has an $ 80 asset that can be posted as collateral . When the collateral is posted , the lender will claim the collateral in the case of default . What is the new threshold interest rate that the lender should charge to break even? break even.