Assume That B = $200 000, R = 1 Year

question 55

Multiple Choice

Assume that B = $200 000, r = 1 year, i = 7 per cent, d = 0.9, N(h₁) = 0.174120 and N(h₂) = 0.793323. Using Moody's KMV Credit Monitor Model, what is the current market value of the loan (round to two decimals) ?

• A) $184 015.32
• B) $186 478.64
• C) $200 000.00
• D) $214 000.00

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Definitions:

Qualifying

The process of meeting established criteria or standards in order to obtain a certain status or opportunity.

Utah

A state in the western United States known for its vast natural landscapes, including mountains, deserts, and the Great Salt Lake.

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Corporate Property

Assets owned by a corporation, including physical goods, intellectual property, and financial assets.