CFA Practice Question

There are 490 practice questions for this study session.

CFA Practice Question

The lender of a commercial loan may charge a default interest rate during the workout period so that the term of the loan is extended. The borrower can then try to arrange for refinancing or sell the property to pay off the balloon balance. The default interest rate is usually ______ the original contract rate.

A. higher than
B. lower than
C. the same as
Correct Answer: A

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