What makes prefer the fixed-rate loan

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Reference no: EM132807138

Problem 1: At last, you decide to apply for a bank loan. Though challenging, you are lucky to find a commercial bank willing to grant you a loan. The bank offers two choices: one is a fixed-rate loan and the other is a floating rate based on 10-year Treasury note yield. Just as you are weighing the options, the news come up that the Federal goverment will expand its balance sheet significantly in the following months. Explain what makes you prefer the fixed-rate loan and what makes you prefer the floating-rate loan.

Reference no: EM132807138

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