Floating-Rate Debt Is Advantageous to Investors Because the Interest Rate

question 33

True/False

Floating-rate debt is advantageous to investors because the interest rate moves up if market rates rise.Since floating-rate debt shifts price risk to companies,it offers no advantages to corporate issuers.

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Definitions:

Sociological Perspective

is the viewpoint that social contexts and structures profoundly influence individuals' behaviors, attitudes, and opportunities.

Culture

The shared beliefs, values, norms, practices, languages, and symbols of a society that shape its members' behaviors and perceptions.

Rationalization

The process of making activities or tasks more efficient and logical, often through the implementation of rules and procedures.

Max Weber

A German sociologist, philosopher, and political economist who is regarded as one of the founders of the modern study of sociology and public administration.