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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