Working as a credit officer, you are examining a loan application by a corporate customer of your bank. Based on your information collection on the repayment potential of similar borrowers, you estimate that this borrower has a full-repayment probability of 90%, default probability of 10%, and the losses given default (LGD) distribution of recovery: total loss principal only 1/4 LGD three quarters half principal of principal 1/4 1/4 probability: 1/4 If your cost of funds is 6%, what interest rate are you going to charge on the loan? Working as a credit officer, you are examining a loan application by a corporate customer of your bank. Based on your information collection on the repayment potential of similar borrowers, you estimate that this borrower has a full-repayment probability of 90%, default probability of 10%, and the losses given default (LGD) distribution of recovery: total loss principal only 1/4 LGD three quarters half principal of principal 1/4 1/4 probability: 1/4 If your cost of funds is 6%, what interest rate are you going to charge on the loan