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
Correct Answer:
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