Question
Calculate the expected and unexpected credit losses on a loan of $750,000 given the following information:...
Calculate the expected and unexpected credit losses on a loan of $750,000 given the following information:
Percentage drawn: 90%
The probability of default is 3%.
The estimated loss given default is 60% with a standard deviation of 40%.
Drawdown on default is 50%.
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Rs 4,074,000 (Debit Balance) Allowances for Credit Losses: Rs
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