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