$$ Question Set $2>$

Suppose that an FI holds two loans with the following characteristics.

$\backslash$table$[[$an$,x_i,\backslash$table$[[$Annual$],[$Spread between$],[$Loan Rate and FI's$],[$Cost of Funds$]],\backslash$table$[[$Annual$],[$Fees$]],\backslash$table$[[$Loss to FI$],[$Given$],[$Default$]],\backslash$table$[[$Expected$],[$Default$],[$Frequency$]]],[1,\frac{?}{\text{b}\text{a}\text{r}}(0\mathrm{.}60),5\mathrm{.}0\%,2\mathrm{.}0\%,25\%,3\%$