Fxed-rate loan to offering it floating-rate loan

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An upward-sloping yield curve suggests that the initial rate financial institutions could charge on a long-term loan to Carson would be higher than the initial rate they could charge on a loan that floats in accordance with short-term interest rates. Does this imply that creditors should prefer offering Carson a fixed-rate loan to offering it a floating-rate loan? Explain why Carson's expectations of future interest rates are not necessarily the same as those of some financial institutions.

Reference no: EM131566064

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