Business, 29.11.2020 18:30 TamB01

A bank charges a commercial borrower a 6.55 percent interest rate on a one-year loan. The bank also charges a 0.5 percent origination fee and requires compensating balances of 7 percent in the form of demand deposits. Reserve requirements are 10 percent. What is the promised gross rate of return on the loan?

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A bank charges a commercial borrower a 6.55 percent interest rate on a one-year loan. The bank also...

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