Structure of interest rates becomes inverted

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Assume the term structure of interest rates becomes inverted?, with short-term rates going to 14 percent and long-term rates 6 percentage points lower than short-term rates. Earnings before interest and taxes are $1,010,000. The tax rate is 30 percent. The part i don't understand is "Assume the term structure of interest rates becomes inverted?

Reference no: EM13917698

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