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Options
- A
A rate which is payable only on maturity
-
Base Rate + Spread
Correct answer
- C
Prime rate of lending
- D
The yield on spread
Why this is the answer
Floating interest rates are linked to a base rate (such as the Government Securities rate) and a spread. For example, a floating rate might be expressed as Base Rate + Spread, indicating it is adjustable according to the base rate.
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