What is bank of america gross profit margin on the loan

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A Swiss sporting goods company borrows in yen in the Eurocredit market at a rate of 4.92 percent from Bank of America using a three-month rollover loan. Bank of America assigns a default risk premium of 1.99 percent on the loan, and the country risk is an additional 0.80 percent. The bank can borrow funds in the Euromarket at the three-month LIBOR rate of 0.38 percent.

Question 1: What is Bank of America's gross profit margin on this loan?

Reference no: EM132873645

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