The small firm wants a 1-year fixed-rate loan. A bank's base rate is 5.03 percent. Adjustment for

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The small firm wants a 1-year fixed-rate loan. A bank's base rate is 5.03 percent. Adjustment for default risk for this firm is 4.1 percent. Competitive risk factor adjustment is 1.9 percent. The bank's money market manager reports that 1-year Treasury securities sell for 0.91 basis points above a 3-month Treasury bill. Given this information, calculate the bank's loan-pricing for this firm.

Round the answer to two decimal places.

Please write % sign in the units box.

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Posted Date: May 18, 2024 08:12 PM

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The small firm wants a 1-year fixed-rate loan. A bank's base rate is 5.03 percent. Adjustment for

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