The Collar of a Floating-Rate Bond Refers to the Minimum

question 49

Multiple Choice

The collar of a floating-rate bond refers to the minimum and maximum:

• A) call periods.
• B) maturity dates.
• C) market prices.
• D) coupon rates.
• E) yields to maturity.

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Definitions:

Expenses

The outflows or using up of assets as part of operations of a business to generate revenue.

Sales Tax Revenue

The income received by a government from the imposition of a tax on the sale of goods and services.

Sales Revenue

The earnings accumulated from the sale of products or services during a specific timeframe.

Cash

A company's most liquid asset, representing currency or assets that can be immediately converted into currency.