Which of the following statements is correct about a, Financial Management

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Which of the following statements is correct about a

Which of the following statements is correct about a corporation that borrows from its bank at "Prime plus 1 percent"? The interest rate:

can be changed upward but not downward over the life of the loan.

can fluctuate up to 1% upward over the life of the loan.

can be changed upward or downward in accordance with prime rate changes over the life of the loan.

is set at a level of the prime rate at initiation of the loan, plus 1 percent.

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Financial Management: Which of the following statements is correct about a

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