Question: Can someone help me with this problem? Attached is an example to help Question 2 1 pts 2. Consider a 6-year loan. The lender requires

Can someone help me with this problem? Attached is an example to help

Can someone help me with this problem? Attached is an example to

Question 2 1 pts 2. Consider a 6-year loan. The lender requires a real risk-free rate of 4.8% for the deferral of consumption. Based on credit history, the lender estimated that the borrower has a p% chance of defaulting. The lender sets a continuously compounded interest rate of 7.5% for the loan. Assuming that the affects of inflation were ignored, find p. Consider a 6-year loan. The lender requires a real risk-free rate of 5.5% for the deferral of consumption. Based on credit history, the lender estimated that the borrower has a p% chance of defaulting. The lender sets a continuously compounded interest rate of 8.4% for the loan. Assuming that the affects of inflation were ignored, find p. A) 14.96% B) 15.55% C) 16.15% D) 16.75% E) 17.35% 6(0.048) = (1-P)26/0.075) 14.69% 14.05% 1-= 0.8504 p=10.1496] 15.33% O 16.61% 15.97%

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