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Use the product rule to multiply. Assume all variables represent positive real numbers.
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Floating Rate Bond
A floating rate bond is a bond with a variable interest rate, which adjusts periodically according to a specified benchmark.
Variable Rate
An interest rate that can change over the period of a loan or mortgage, based on an underlying benchmark interest rate or index.
Coupon Payment
The interest payment made to bondholders, typically semiannually, as a return on investment.
Coupon Bond
A bond that makes regular interest payments to its holders, named after the detachable coupons once used for interest payments.
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