Which One of the Following Statements Concerning Floating-Rate Bonds Is

question 41

Multiple Choice

Which one of the following statements concerning floating-rate bonds is correct?

• A) The market price of a floating-rate bond will always equal par.
• B) Floating-rate bonds have coupon rates that generally can vary without limitations.
• C) Floating-rate bonds generally contain a put provision at a pre-specified premium price.
• D) Floating-rate bonds are issued by the government but not by corporations.
• E) The market price of a floating-rate bond is less volatile than that of a comparable fixed rate bond.

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Definitions:

Break-Even

The point at which total costs and total revenues are equal, resulting in no net loss or gain for the business.

Monthly Unit Sales

The total number of units of a product sold by a company in one month.

Break-even Sales

The amount of revenue required to cover both fixed and variable expenses, resulting in zero profit.

Recent Month

The latest completed month period for which data or details are considered or analyzed, typically in a financial or operational context.