The duration of a soon to be approved loan of $12 million is 5 years. The increase

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The duration of a soon to be approved loan of $12 million is 5 years. The increase in credit risk premium for bonds belonging to the same risk category of the loan has been estimated to be 1.5 per cent. What is the capital at risk if the current average level of interest rates for this category of bonds is 7.5 percent?

Posted Date: May 19, 2024 03:17 PM

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The duration of a soon to be approved loan of $12 million is 5 years. The increase

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