(a) What is base rate ? How it is calculated? (b) State the loan pricing mechanism followed in banks of Bangladesh. (c) Calculate the loan price of Rose Bank under Cost plus Loan Pricing Method. Consider cost of capital is 26% and the borrower belongs to 'Good' Group, hence risk premium for the group is 250 basis point or 2.5 per cent. Particulars Share Capital Reserve Interest & Discount Received... Interest paid on deposits... Savings Bank Deposit.. Current Deposits.. Fixed Deposits... Bond Issued by Bank Everything with details is already posted in the

(a) What is base rate ? How it is calculated? (b) State the loan pricing mechanism followed in banks of Bangladesh. (c) Calculate the loan price of Rose Bank under Cost plus Loan Pricing Method. Consider cost of capital is 26% and the borrower belongs to 'Good' Group, hence risk premium for the group is 250 basis point or 2.5 per cent. Particulars Share Capital Reserve Interest & Discount Received... Interest paid on deposits... Savings Bank Deposit.. Current Deposits.. Fixed Deposits... Bond Issued by Bank Everything with details is already posted in the

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter7: Types And Costs Of Financial Capital

Section: Chapter Questions

Problem 1bM

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Question

(a) What is base rate ? How it is calculated?
(b) State the loan pricing mechanism followed in
banks of Bangladesh.
(c) Calculate the loan price of Rose Bank under
Cost plus Loan Pricing Method. Consider cost of
capital is 26% and the borrower belongs to 'Good'
Group, hence risk premium for the group is 250
basis point or 2.5 per cent.
Particulars
Share Capital
Reserve
Interest & Discount Received...
Interest paid on deposits..
Savings Bank Deposit....
Current Deposits..
Fixed Deposits...
Bond Issued by Bank
Everything with details is already posted in the
question. there are no other details

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