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What is bank of america gross profit margin on this loan

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Question - A Swiss sporting goods company borrows in yen in the Eurocredit market at a rate of 4.28 percent from Bank of America using a three- month rollover loan. Bank of America assigns a default risk premium of 1.86 percent on the loan, and the country risk is an additional 0.73 percent. The bank can borrow funds in the Euro-market at the three-month LIBOR rate of 0.40 percent. What is Bank of America's gross profit margin on this loan?

Reference no: EM133185295

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