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If the 3-month KLIBOR rate decreases to 3%, what will be the impact on Company ABC and Company XYZ?
If the 3-month KLIBOR rate decreases to 3%, what will be the impact on Company ABC and Company XYZ?
- Company ABC will receive a higher interest payment from Company XYZ
- Company XYZ still pays Company ABC at a rate of 4%, which is higher than the market rate
- Company XYZ is benefited as they continue to pay Company ABC at a rate of 4%, which is lower than the market rate
- Company ABC will receive a lower interest payment from Company XYZ (correct)
What happens to Company ABC's interest payment if the 3-month KLIBOR rate drops to 3%?
What happens to Company ABC's interest payment if the 3-month KLIBOR rate drops to 3%?
- It increases
- It becomes unpredictable
- It stays the same
- It decreases (correct)
In the scenario where the 3-month KLIBOR rate falls to 3%, how is Company XYZ impacted?
In the scenario where the 3-month KLIBOR rate falls to 3%, how is Company XYZ impacted?
- Company XYZ is benefited as they continue to pay Company ABC at a rate of 4%, which is lower than the market rate (correct)
- Company XYZ's interest payment to Company ABC remains unaffected
- Company XYZ is at a disadvantage as they have to pay Company ABC at a higher rate than the market rate
- Company XYZ's interest payment to Company ABC becomes unpredictable
If the 3-month KLIBOR rate decreases to 3%, what will be the impact on Company ABC and Company XYZ?
If the 3-month KLIBOR rate decreases to 3%, what will be the impact on Company ABC and Company XYZ?
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In the scenario where the 3-month KLIBOR rate falls to 3%, what will be the impact on the interest payment received by Company ABC from Company XYZ?
In the scenario where the 3-month KLIBOR rate falls to 3%, what will be the impact on the interest payment received by Company ABC from Company XYZ?
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If the 3-month KLIBOR rate goes down to 3%, how is Company XYZ impacted in terms of the interest rate paid to Company ABC?
If the 3-month KLIBOR rate goes down to 3%, how is Company XYZ impacted in terms of the interest rate paid to Company ABC?
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