If the bank supervisors credit conversion factor is 20 find, Financial Management

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If the bank supervisors credit conversion factor is 20 find

OhBank also regularly provides documentary letters of credit for OkayCorp, which has a credit rating of A+. The outstanding contracts have a face value of $5 million. If the bank supervisor’s credit conversion factor is 20%, find the dollar value of capital required to support this letter of credit facility.

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