There are two types of borrowers in the credit market for motorcycle loans, type X,...
70.2K
Verified Solution
Link Copied!
Question
Accounting
There are two types of borrowers in the credit market for motorcycle loans, type X, and type R. They both need a loan for $37,600, for a Ducati. Type X repays 96% of the time and type R repays 84% of the time. If the lending bank, Street Bank, has full information, then the risk premium for X is ____% and for R it is ____%.
Group of answer choices
A) 5.1; 19
B) 4.2; 19
C) 5.1; 15.5
D) 4.2; 15.5
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.