Floating-Rate Bonds Have Adjustable Rates to Protect Real Rates of Return

question 45

Multiple Choice

Floating-rate bonds have adjustable rates to protect real rates of return against inflation. The rates paid are limited by

• A)the put provisions of the issues.
• B)a floor rate that sets the minimum.
• C)a cap rate that sets the maximum.
• D)a floor rate that sets the minimum and a cap rate that sets the maximum.

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Definitions:

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The prospects within an economy for individuals to find employment, start businesses, and achieve financial success and advancement.

Ethical Beliefs

The set of moral principles or values that guide an individual's or society's behavior and choices.

Unionization

The process of organizing workers into unions to collectively bargain for better wages, benefits, and working conditions.

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