6 Questions
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 lower interest payment from Company XYZ
What happens to Company ABC's interest payment if the 3-month KLIBOR rate drops to 3%?
It decreases
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
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 lower interest payment 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?
It will decrease
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?
Company XYZ is benefited as they continue to pay Company ABC at a rate of 4%, which is lower than the market rate
Test your knowledge of interest rate impact on companies with this quiz. Determine the true statements regarding the impact of a decrease in the KLIBOR rate to 3% on Company ABC and Company XYZ's interest payments.
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