Define fixed interest rate and variable interest rate

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Why is it advantageous (disadvantageous) at times to borrow on a fixed interest rate? Why is it advantageous (disadvantageous) at times to borrow on a variable interest rate?

a. Define fixed interest rate and variable interest rate.

b. Why is it advantageous (disadvantageous) at times to borrow on a fixed interest rate? Why is it advantageous (disadvantageous) at times to borrow on a variable (floating) interest rate?

Reference no: EM133110798

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