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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asked Feb 16, 2021 128k views

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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?

Business
high-school

Hyena asked

by Hyena

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Answer:

Step-by-step explanation:

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

DanielBK answered Feb 22, 2021

by DanielBK

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