Review of Rural Telephone Bank's 1991 Loan Interest Rate Calculation

Gao ID: AFMD-92-28 November 15, 1991

GAO is required to annually review the interest rate charged to borrowers--known as the "cost of money rate"--as determined by the Rural Telephone Bank for the preceding fiscal year. The Rural Telephone Bank's cost of money rate was set at 5.43 percent for fiscal year 1991. GAO found this rate to be in accordance with the Omnibus Budget Reconciliation Act of 1987 and 7 C.F.R. Part 1610. Attached to the letter containing GAO's findings is a copy of the Rural Telephone Bank's interest rate notice along with details of its calculation of the interest rate to be applied to loans issued during fiscal year 1991.

GAO found that the RTB interest rate determination, which established the cost-of-money rate at 5.43 percent, was in accordance with legislative requirements.



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