LIBOR and Cost of Borrowing
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What is LIBOR, and how does it affect a firm's cost of borrowing?
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This solution explains what LIBOR is and how it affects a firm's cost of borrowing.
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LIBOR stands for the London Interbank Offered Rate and it is the interest rate that banks are able to borrow money at, which is then used as loan funds for their customers. When a bank borrows funds, the funds are typically ...
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