Question: Question 6 (5 points) A bank has made a loan to a firm. The terms include a base rate of 8%, a risk premium of

Question 6 (5 points) A bank has made a loan to a firm. The terms include a base rate of 8%, a risk premium of 3%, an origination fee of 0.1875%, and a 9% compensating balance requirement. Required reserves at The Fed are 10%. What is the true cost to the borrower on the loan? of +(BR) 1-[b(1-RR)] 13.61% 13,46% 12.29% 12.17%

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