Calculate bank loan-pricing for this firm

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Question

The small firm wants a 1-year fixed-rate loan. A bank's base rate is 6.02 percent. Adjustment for default risk for this firm is 4.3 percent. Competitive risk factor adjustment is 1.7 percent. The bank's money market manager reports that 1-year Treasury securities sell for 0.28 basis points above a 3-month Treasury bill. Given this information, calculate the bank's loan-pricing for this firm.

Reference no: EM133239552

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