> Moving to another question will save this response. Question 2 A bank has a cost of funds of 10%, a default rate of 2% and an underwriting transaction cost of $20 per loan. To break even on a S 100 loan, the ba- cost of funds, $2 to cover expected defaults, and S20 to cover transaction cost totaling S32 or an interest rate of 32%. On a S70 loan, using the san rate, and underwriting transaction cost above, the break even rate would be 96 The interest rate for the $100 loan is that is a lower percentage of the principal. than the rate for th o 52.2%, lower, fixed cost b. 40-5%, lower, fixed cost O c. 40.5%, higher, variable costs d, 52.2%, higher, variable cost 12 MacBook Ai