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Fred has good credit and can borrow at 5%. Bob has poor credit and can borrow at a rate of 11%. What is the amount of the risk premium that Bob will pay?
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1 vote
Fred has good credit and can borrow at 5%. Bob has poor credit and can borrow at a rate of 11%. What is the amount of the risk premium that Bob will pay?

User Hyena
by
4.7k points

1 Answer

3 votes

Answer:

6%

Step-by-step explanation:

By subtracting 11% by 5% you will get 6%, which is the premium Bob is paying

User DanielBK
by
3.7k points
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