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What is the lgd rate

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A firm defaults and has not repaid the loan balance. Original Loan Balance at the date of default is $20,000. At the end of year 1, the collection department contacts the defaulted obligor and it costs the firm $1,000. The firm paid $5,000. At the end of year 2 and year 3, the firm made a payment of $5,000, respectively. After that no more payment was from that firm. To collect the remaining loan the interest rate is 5%. What is the LGD rate?

Reference no: EM133069769

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