Long-term debt instrument with fixed interest rate

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Why do you think a debt instrument whose interest rate is charged periodically based on some market interest rate would be more suitable for a depository institution than a long-term debt instrument with a fixed interest rate?

In the long run, which is more advantageous to a firm? Should a firm take a risk with the floating rate or go with the known fixed rate and why?

Reference no: EM131622319

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