Which One of the Following Statements Concerning flOating-Rate Bonds Is

question 236

Multiple Choice

Which one of the following statements concerning floating-rate bonds is correct?

• A) The market price of a floating-rate bond will always equal par.
• B) Floating-rate bonds have coupon rates that generally can vary without limitations.
• C) Floating-rate bonds generally contain a put provision at a pre-specified premium price.
• D) Floating-rate bonds are issued by the government but not by corporations.
• E) The market price of a floating-rate bond is less volatile than that of a comparable fixed rate bond.

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Definitions:

Formal Communication Channels

Structured pathways through which official information flows within an organization, such as memos, emails, and meetings.

Staff

The employees or personnel who work for an organization or business.

Operating Efficiency

A measure of how well an organization uses its resources to produce goods or services, typically aiming for the highest output with the least waste.

Formal Organizational Structure

The officially designated arrangement of roles, responsibilities, and relationships within an organization.