How are the rates on short-term borrowing typically set

Reference no: EM131289993

1. How is interest paid on a discount investment? What is the money market yield (MMY)? How can the MMY be converted into a bond equivalent yield (BEY)?

2. How are the rates on short-term borrowing typically set? What role does either the prime rate or LIBOR play in this process? What is the effective borrowing rate (EBR)? How does the EBR differ from the stated all-in-rate

Reference no: EM131289993

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