The Global Community Bank, under terms of its long-term banking agreement with the company, has agreed to lend the company additional monies should you elect to use debt to help finance growth and other financial needs; the interest rate the GCB will charge on such loans is tied to the term of the loan (1-year, 5-years, 10-years) and also to

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28-01-2022
Business

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The Global Community Bank, under terms of its long-term banking agreement with the company, has agreed to lend the company additional monies should you elect to use debt to help finance growth and other financial needs; the interest rate the GCB will charge on such loans is tied to the term of the loan (1-year, 5-years, 10-years) and also to

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Tundexi Tundexi · Answer 1 · 2022-01-31T13:11:30+01:00

The interest rate to be charged is tied to the loan term, company's credit rating and going rates of interest in world financial markets.

What is an Interest rate?

An Interest rate refers to an amount charged by a lender on a debt which is expressed as a percentage of the principal.

Hence, the interest rate to be charged is tied to the loan term, company's credit rating and going rates of interest in world financial markets.

In conclusion, the Option D is correct.