School Finance Interview (Elementary)

c. Assuming that duration cannot be changed, how much additional interest and fee income would be necessary to make the loan acceptable? Necessary RAROC = Income/Risk ( Income = RAROC * Risk = $1,406,250 *0.10 = $140,625. Therefore, additional income = $140,625 - $125,000 = $15,625. d. Given the proposed income stream and the negotiated ... ................
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