Interest rate volatility affects the borrowing costs of a ﬁrm.

Name: Interest rate volatility affects the borrowing costs of a ﬁrm.
Brand: Quizplus
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Question

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Interest rate volatility can cause changes in interest rates, which affects the borrowing costs of a firm. As interest rates rise, the cost of borrowing increases, and as interest rates fall, the cost of borrowing decreases. Therefore, interest rate volatility does affect the borrowing costs of a firm.

Interest Rate Volatility Affects the Borrowing Costs of a ﬁRm