Lending rate for a customer with a probability of default

Assignment Help Finance Basics

Reference no: EM131796498

Question: What is the lending rate for a customer with a probability of default of 1% and a loss given default of 28%. The funding rate is 6.3% and the VaR for the loan is 13 cents on the dollar. The bank benchmark is a 9.6% return on equity. Enter your answer as a decimal with four digits of precision.

Reference no: EM131796498

Questions Cloud

Company develop solid and well-structured financial : How does the SWOT analysis help a company develop solid and well-structured financial, marketing, and distribution/logistics plans? Explain

Majority of voters in the sample : How large a random sample must be takes for there to be a 99% chance that the majority of voters in the sample will favor candidate A?

Compute required sales needed to achieve target net income : Management's net income goal is $61,900. Compute the required sales needed to achieve management's target net income of $61,900

What is the total amount of fixed manufacturing cost : what is the total amount of fixed manufacturing cost incurred to support this level of production

Lending rate for a customer with a probability of default : What is the lending rate for a customer with a probability of default of 1% and a loss given default of 28%. The funding rate is 6.3% and the VaR for the loan.

What is the reasoning for conducting post-hoc analyses : What is the reasoning for conducting post-hoc analyses - When would you choose for your post hoc analyses the method by: Fisher's least significant difference

Two winners and someone else gets just one : In a raffle with 100 tickets, 10 people buy 10 tickets each. If there are 3 winning tickets drawn at random find the probability that:

Compute the required sales in dollars to break even : Wesland Corporation had total variable costs of $168,000, total fixed costs of $116,200, Compute the required sales in dollars to break even

Expression for the probability : Write down an expression for the probability that the lot is accepted.

Reviews

Write a Review

Required(*) Message

Finance Basics Questions & Answers

Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

User Account

All Pages