Multiple Choice
A borrower who has to pay an interest rate of 8% rather than 6% due to risk spread will pay:
A) $20 more in interest annually for every $100 borrowed.
B) 33.3% higher interest in dollar terms.
C) 2% in net interest.
D) less interest in total over the life of the loan.
Correct Answer:
Verified
Correct Answer:
Verified
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