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LIBOR

This topic has 1 reply, 2 voices, and was last updated 1 year ago by John Moffat.

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May 20, 2021 at 12:14 am #621140
John1998m
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Is it true that the rate at which BANKS lend & borrow money from each other & charge LIBOR (it is bank to bank interest rate)
LIBOR is a floating interest rate that keeps changing on a day-to-day basis?
Can we be asked any arithmetic on floating rate?
May 20, 2021 at 7:40 am #621171
John Moffat
Keymaster
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What you have written is true (and the interest charged to companies when they borrow is based on LIBOR but it a bit higher depending on how risky the bank thinks that the company they are lending to is.)
You are not asked for calculations on LIBOR in Paper FM.
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