Determining interest rate to lock


1) Identify the most important U.S. GDP results and trends for most recent 3-year period. Write down the main factors which you believe have had the impact on GDP increase or decrease. Give support for your rationale.

2) Federal Reserve Board has reserved federal rate to the nominal rate in latest years. Describe the justification for this behaviour, pointing out the effectiveness on financial markets.

Requirements

Min Pages: 1

Other Requirements:

1. Answer the 2 discussion questions.

2. Must not be bigger than 1 page single spaced.

Assume the company requires borrowing $10 million for 3 months starting on September 2016. If your company wishes to lock in borrowing interest rate, what must you do now? Be precise. Determine  the interest rate can you lock in now?

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Finance Basics: Determining interest rate to lock
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