The most common proxy for the benchmark rate from which a floating-rate payment is determined is the prime rate.

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The most common proxy for the benchmark rate from which a floating-rate payment is determined is typically the London Interbank Offered Rate (LIBOR) or, more recently, alternative rates like the Secured Overnight Financing Rate (SOFR) in the United States, rather than the prime rate.

The Most Common Proxy for the Benchmark Rate from Which