Floating Rate Debt Is Advantageous to Investors Because the Interest

question 16

True/False

Floating rate debt is advantageous to investors because the interest rate moves up if market rates rise. Floating rate debt shifts interest rate risk to companies and thus has no advantages for issuers.

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Definitions:

Abnormal Behavior

Behaviors that deviate significantly from societal norms or expectations, often resulting in distress or functional impairment.

Adulthood

The period in an individual's life after they have reached physical maturity, marked by increased independence and responsibility.

Sigmund Freud

Austrian neurologist and the founder of psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Inferiority

A feeling of lower standing compared to others, which can stem from real or perceived shortcomings and can motivate efforts to improve oneself or lead to feelings of resignation.