We mentioned that the interest rate on longer-term bank loans is not usually fixed for the term of the loan, but adjusted up or down as the general level of interest rates changes. Often the interest rate is linked to the bank's prime rate or to the London Interbank Offered Rate (LIBOR), the interest rate at which major international banks lend to one another. Suppose you are offered the choice between a 3-year loan at the bank's prime rate or one at l% above LIBOR. Which would you prefer on the basis of information about current rates? Go to www.fedprimerate.com to find current rates.