You are considering buying a loan from a local bank with, Financial Management

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You are considering buying a loan from a local bank with

You are considering buying a loan from a local bank with the following features: Loan principal: $10,000 Term: 5 years Stated rate: 7% Current market value: 9,500 What rate of return can you expect from this loan? Select one: a. 7.97% b. 8.03% c. 8.26% d. 8.89% e. 9.21%

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