You are the manager of a company that obtained a variable-rate 10-year loan in 2019. At the time, the loan was based on a U.S. prime lending rate of 4.75% plus a 2% premium. With the current increase in inflation and crude oil prices, your company's CFO is concerned about the risk of an increase in the prime rate. 

What action could you take to mitigate that risk? Explain.

Answer rating: 100% (QA)

One action you could take to mitigate the risk of an increase in the prim... View the full answer