The Desire for Floating-Rate Bonds, and Consequently Their Increased Usage

question 85

True/False

The desire for floating-rate bonds, and consequently their increased usage, arose out of the experience of the early 1980s, when inflation pushed interest rates up to very high levels and thus caused sharp declines in the prices of outstanding bonds.

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Definitions:

Common Ground

Shared beliefs, values, or interests that make communication more effective and cooperative between parties.

Distract

To divert someone's attention from something to something else, often causing a decrease in focus or concentration.

Close

The conclusion or final part of a document, presentation, or sale, often summarizing key points or calling for action.

Negative Message

Communication that conveys bad news, rejection, or a negative outcome.