The most common benchmarks used for pricing long-term bank loans are:

Question

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LIBOR, the federal funds rate, and the prime rate are all common benchmarks used for pricing long-term bank loans. LIBOR is the London Interbank Offered Rate, which is the average interest rate at which banks lend to each other in the London interbank market. The federal funds rate is the interest rate at which banks lend to each other overnight. The prime rate is the interest rate that banks charge their most creditworthy customers.

The Most Common Benchmarks Used for Pricing Long-Term Bank Loans