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.

---

Definitions:

Auto Fill Options

Auto Fill Options are features in software applications that automatically complete fields based on precedent data or recognized patterns, enhancing productivity.

Default Option

The preselected choice or setting that will be used unless the user specifies an alternative.

Column Width

The horizontal measurement of a column in a spreadsheet or table, which can be adjusted to accommodate content.

Formula Result

The output produced by applying a mathematical or logical operation in a spreadsheet or software application.