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If a firm creates an interest rate collar on a variable rate loan, then the rate the firm pays will always: be higher than, or

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If a firm creates an interest rate collar on a variable rate loan, then the rate the firm pays will always: be higher than, or equal to, the cap but lower than, or equal to, the floor. remain constant at the average of the floor and cap rates. remain constant at the cap rate. be higher than, or equal to, the floor but lower than, or equal to, the cap. remain constant at the floor rate

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