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

question 35

True/False

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

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Definitions:

Culturally Encoded

Language that is influenced by culture and socialization experiences.

Monochronic

Sequence of events occurring one at a time.

Culturally Encoded

Ideas, norms, or values that are implicitly understood and shared within a specific culture, influencing behaviors and perceptions.

Expressive Language

The ability to use words, sentences, gestures, and writing to convey meaning and communicate.