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Which loan strategy would achieve some flexibility; no exposure to credit risk but exposure to repricing risk? Question 22 options: A company borrows $1 million
Which loan strategy would achieve some flexibility; no exposure to credit risk but exposure to repricing risk?
Question 22 options:
| A company borrows $1 million for one year at a fixed rate, then renew the credit annually |
| A company borrows $5 million for five years at a fixed interest rate |
| A company borrows $5 million for five years at a floating rate, LIBOR + 1% |
| A company borrows $1 million for one year at LIBOR + 1%, then renew the credit annually |
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