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Your Answer Correct Answer X Your answer is incorrect. Suppose two firms want to borrow...

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Accounting

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Your Answer Correct Answer X Your answer is incorrect. Suppose two firms want to borrow money from a bank for a period of one year. Firm A has excellent credit, whereas Firm Bs credit standing is such that it would be required to pay prime + 3 percent. The current prime rate is 6.71 percent, the 30-year Treasury bond yield is 4.33 percent, the three-month Treasury bill yield is 3.55 percent, and the 10-year Treasury note yield is 4.24 percent. What are the appropriate loan rates for each firm? Firm A loan rate 10.26 %. Firm B loan rate 12.26 %

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