In General, How Often Are Floating Rate Bonds Adjusted to Meet

question 11

Multiple Choice

In general, how often are floating rate bonds adjusted to meet the market demands?

• A) Daily
• B) Weekly
• C) Monthly or Quarterly
• D) Annually

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Definitions:

Tax Deferred

Financial arrangements where investment gains such as interest, dividends, or capital gains accumulate tax free until the investor takes constructive receipt of the gains.

Net Present Value

The difference between the current value of cash inflows and the current value of cash outflows over a period of time.

Dividend Policy

The policy a company uses to decide how much it will pay out to shareholders in dividends. It involves whether to distribute profits to shareholders or reinvest them in the business.