What is an interest “reference rate,” and how is it used to set rates for individual borrowers?

Economics Today and Tomorrow, Student Edition
1st Edition
ISBN:9780078747663
Author:McGraw-Hill
Publisher:McGraw-Hill
Chapter4: Going Into Debt
Section: Chapter Questions
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What is an interest “reference rate,” and how is it used to set rates for individual borrowers?

 

From the point of view of a borrowing corporation, what are credit and repricing risks? Explain the steps a company might take to minimize both.

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