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What is the expected or promised gross return on the loan

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Question 1: TDBank has made a loan to NU Corporation. The loan terms include a default risk-free borrowing rate of 8 percent, a risk premium of 3 percent, an origination fee of 0.1875 percent, and a 9 percent compensating balance requirement. Required reserves are 6 percent. What is the expected or promised gross return on the loan?

Reference no: EM132927740

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