The small firm wants a 1-year fixed-rate loan. A bank's base rate is 6.14 percent. Adjustment for default risk for this firm is 4.4 percent. Competitive risk factor adjustment is 1.8 percent. The bank's money market manager reports that 1-year Treasury securities sell for 0.85 basis points above a 3-month Treasury bill. 

Given this information, calculate the bank's loan-pricing for this firm

Answer rating: 100% (QA)

To calculate the banks loan pricing for the small firm we need to consider various components includ... View the full answer