Question: Question 5 (5 points) A bank has made a loan to a firm. The terms include a base rate of 10%, a risk premium of

Question 5 (5 points) A bank has made a loan to a firm. The terms include a base rate of 10%, a risk premium of 2%, an origination fee of 0.25%, and a 10% compensating balance requirement. Required reserves at The Fed are 10%. What is the ROA on the loan? of +(BR) 1-[b/1-RR) 12.11% 12.29% 13.61% 13.46%

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