What risks do peter and bank face with either approach, Business Law and Ethics

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What risks do peter and bank face with either approach

Problem

Bauhaus Bank is considering making a ten-year loan to Peter. Peter would like a fixed-rate loan. The bank wants to make a floating-rate loan, where Peter would pay interest equal to the U.S. government bond rate plus a spread. What risks do Peter and Bank face with either approach?

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Business Law and Ethics: What risks do peter and bank face with either approach

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Business Law and Ethics: What risks do peter and bank face with either approach

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