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

question 15

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 issuers.

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Definitions:

DSM-5

The Diagnostic and Statistical Manual of Mental Disorders, Fifth Edition, a comprehensive classification and diagnostic tool used by mental health professionals to diagnose and classify mental disorders.

Stress Response

The body's reaction to a challenge or demand, characterized by physiological changes such as increased heart rate and muscle tension.

Positive Stress

A type of stress that can actually result in improved performance and productivity, often perceived as within one's coping abilities.

Stress Model

A theoretical framework explaining how stress affects biological and psychological processes.