Business, 22.03.2021 18:50 lexybellx3

4) A bank issues $360 loans to two types of borrowers, type A and B. Type A repays with probability 0.85 and type B repays with probability 0.75. If the bank has perfect information about type, then the difference between the two competitive interest rates on these loans is %.

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4) A bank issues $360 loans to two types of borrowers, type A and B. Type A repays with probability...