What is the loan rate charged by american crane

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American Crane management is planning to make a $2.7 million loan to a French firm. Currently, LIBOR is at 1.1 percent. American management considers a default risk premium of 0.80 percent, a foreign exchange rate risk premium of 0.30 percent, and a country risk premium of 0.13 percent to be appropriate for this loan.

Question 1: What is the loan rate charged by American Crane?

Reference no: EM132873636

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