Multiple Choice
Consider the case of a simple one-period framework.If i = 12.30% and k = 13.87%, what is the risk premium on the corporate loan (round to two decimals) ?
A) 13.87% - 12.30% = 1.57%
B) 13.87% * 12.30% = 0.0171 = 1.71%
C) 13.87% / 12.30% = 1.13%
D) The risk premium equals k = 13.87%
Correct Answer:
Verified
Correct Answer:
Verified
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