The Business Loan Pricing Method That Estimates the Before-Tax Yield

question 51

Multiple Choice

The business loan pricing method that estimates the before-tax yield expected from the loan by considering the all revenues and expenses associated with a particular borrower and the net amount of loanable funds that the bank must turn over to the borrower,is called the:

• A)the cost-plus loan pricing method.
• B)the price leadership model.
• C)the below-prime market pricing model.
• D)customer profitability analysis.
• E)None of the options is correct.

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Definitions:

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