What is the capital loan risk of the loan if the current


The duration of a soon to be approved loan of $10 million is four years. The increase in risk premium for bonds belonging to the same risk category of the loan has been estimated to be 5.5 percent. What is the capital (loan) risk of the loan if the current average level of interest rates for this category of bonds is 12 percent?

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Financial Management: What is the capital loan risk of the loan if the current
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