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Business, 11.03.2020 00:04 cody4976

Companies raise capital in two main forms: debt and equity. In a free economy, capital is allocated through a market system. The is the price that lenders receive and borrowers pay for debt capital. There is no single "interest rate"—"interest rates" on different types of debt vary depending on the borrower's risk, the use of funds borrowed, the type of collateral used to back the loan, and the length of time the funds are needed.

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