Carlos Rivera, CEO of Rivera, Inc., decided that upon his retirement, he would elect his son Christian to become the new CEO. Carlos thought it would be a good idea to have Christian shadow him at work to understand the roles and responsibilities of a CEO. Christian shadowed his father for months in order to learn every aspect of the business. Carlos knew that the best way for Christian to learn was to actually perform some of the tasks he did on a daily basis, rather than simply describe them. Although the company generally focused on short$-$term financing, Carlos felt that it was important for Christian to understand all the different types of financing. Christian learned about the type of bonds that the company offered to raise capital. These bonds allowed the purchasers of the bond to keep them until maturity. Christian also learned the process of obtaining bonds and the various types of long$-$term financing methods. Job shadowing was indeed a worthwhile experience for Christian.

Refer to Rivera, Inc. When working with clients, Christian should advise them about the importance of paying debts on time to build a good credit rating. This is in part because other than large corporations with sterling credit histories, businesses with good credit ratings generally can borrow funds at the $\_\_\_\_\_\_\_$ plus $2$ percent.

Question $14$ options:

a$)$

secondary interest rate

b$)$

zero$-$base rate

c$)$

risk$-$return ratio

d$)$

securities exchange rate

e$)$

prime interest rate