To estimate the interest charges on the loan, an analyst should use one of the following four formulas:
A . Loan interest = Risk-free rate – Probability of default x Loss given default + Spread
B . Loan interest = Risk-free rate + Probability of default x Loss given default + Spread
C . Loan interest = Risk-free rate – Probability of default x Loss given default – Spread
D . Loan interest = Risk-free rate + Probability of default x Loss given default – Spread
Answer: B
Latest ICBRR Dumps Valid Version with 341 Q&As
Latest And Valid Q&A | Instant Download | Once Fail, Full Refund