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What is the loan rate charged by American Carla Vista

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Reference no: EM132903982

Question - American Carla Vista management is planning to make a $2.3 million loan to a French firm. Currently, LIBOR is at 1.8 percent. American management considers a default risk premium of 1.55 percent, a foreign exchange rate risk premium of 0.25 percent, and a country risk premium of 0.13 percent to be appropriate for this loan.

Required - What is the loan rate charged by American Carla Vista?

Reference no: EM132903982

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