Question: a. Assume that you expect interest rates decline over time. Should you issue bonds or commercial paper in order to obtain funds? b. If you

a. Assume that you expect interest rates decline over time. Should you issue bonds or commercial paper in order to obtain funds?
b. If you expect interest rates decline, will you benefit more from providing medium-term, fixed-rate loans to consumers or floating-rate loans to businesses?
c. Why would you still maintain some balance between medium-term, fixed-rate loans and floating-rate loans to businesses, even if you anticipate that one type of loan will be more profitable under a cycle of declining interest rates?

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