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Calculate the expected loss for legae investment bank

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Legae Investment Bank has credited Magong-Reno Platinum Mine with R750m, with a maturity of two years. The probability of loan default (PD) is 1.75%, and the recovery rate 14 is assumed to be 25%. Calculate the expected loss for Legae Investment Bank's loan to Magong-Reno Platinum Mine.

Reference no: EM132630003

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