# Antonio asks for a one-year loan at a bank when the one-year Treasury rate is 2%. Answer

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## Question:

Antonio asks for a one-year loan at a bank when the one-year Treasury rate is 2%. Answer the following question about his application. (Show your work )

If the loan is an unsecured vacation loan carrying an interest rate of 4.21%, what probability of default does the bank use when pricing Antonio's loan? (report the probability to the nearest hundredth of a percent.) _

**Related Book For**

## Income Tax Fundamentals 2013

ISBN: 9781285586618

31st Edition

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill