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    Principles of Managerial Finance
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    Exam 16: Current Liabilities Management
  5. Question
    Generally the Increment Above the Prime Rate on a Floating-Rate
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Generally the Increment Above the Prime Rate on a Floating-Rate

Question 23

Question 23

True/False

Generally the increment above the prime rate on a floating-rate loan will be higher than on a fixed-rate loan of equivalent risk because the lender bears higher risk with a floating-rate loan.

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