Which of the following statements is correct about a corporation that borrows from its bank at "Prime plus 1 percent"? The interest rate:
can be changed upward but not downward over the life of the loan.
can fluctuate up to 1% upward over the life of the loan.
can be changed upward or downward in accordance with prime rate changes over the life of the loan.
is set at a level of the prime rate at initiation of the loan, plus 1 percent.