When obtaining a loan, the risk premium paid above LIBOR depends on the:

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The risk premium paid above LIBOR depends on the credit risk of the borrower. The riskier the borrower is perceived, the higher the risk premium that will be added on top of the LIBOR rate. The risk premium compensates the lender for taking a higher risk, and it reflects the likelihood that the borrower may default on the loan. The risk premium is typically negotiated between the borrower and the lender based on the borrower's creditworthiness and financial stability. The risk-free interest rate of the borrower, the borrower's stock price, and the lender's stock price are not directly related to the risk premium paid above LIBOR.

When Obtaining a Loan, the Risk Premium Paid Above LIBOR