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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