All Else the Same, If Interest Rates Fall, Coupon Payments

question 381

True/False

All else the same, if interest rates fall, coupon payments on floating rate bonds will fall.

---

Definitions:

Net Income

The total profit of a company after all expenses and taxes have been subtracted from revenue.

Multiple-Step Statement

A Multiple-Step Income Statement presents revenues and expenses through several sections, including operating and non-operating activities, thereby highlighting key components of income and expenditure.

Interest Expense

The cost incurred by an entity for borrowed funds; it represents the interest payable on any borrowings - bonds, loans, convertible debt, or lines of credit.