A firm agrees to accept payments on a $1,000,000 loan with a fixed interest rate of 8% in exchange for making the payments on a loan with floating rate payments based on BBSW.Payments are interest only with principal due in 10 years.The firm will benefit
A) if BBSW falls.
B) if BBSW rises.
C) if BBSW remains unchanged.
D) if BBSW fluctuates randomly.
Correct Answer:
Verified
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