15-33 In exchange for the loss of some present value of the interest and principal on a loan after a rescheduling,the lender avoids the permanent loss that would result from a default.

Question

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This statement is true. Rescheduling a loan may result in the lender losing some present value of the interest and principal, but it can also help avoid a default which would result in a permanent loss.

15-33 in Exchange for the Loss of Some Present Value