American Bancorp is planning to make a 3.5 million loan to a French firm Currently LIBOR is
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American Bancorp is planning to make a 3.5 million loan to a French firm Currently LIBOR is at 4.5 percent American considers a default risk premium of 1.15 percent a foreign exchange risk premium of 0.35 percent and a country risk premium of 0.13 percent. What is the loan rate charged by American Bancorp?
Related Book For
Financial Institutions Management A Risk Management Approach
ISBN: 978-0071051590
8th edition
Authors: Marcia Cornett, Patricia McGraw, Anthony Saunders
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