The breakeven condition for a lender to an emerging market economy where the risk of default is positive cannot exceed the:
A) probability of repayment minus the probability of default times the rate of interest (r × [pR - pD]) .
B) probability of default times the probability of repayment (pD × pR) .
C) lender's cost, which is the probability of repayment, times the lender's interest earnings (p × [1 + RL]) .
D) market rate of interest for the most default-prone borrowers.
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