Floating Rate Bonds Provide Which One of the Following Advantages

question 57

Multiple Choice

Floating rate bonds provide which one of the following advantages?

• A) A lower risk for the issuing corporation
• B) A higher initial rate received by the investor
• C) Higher tax advantages for the investor than a conventional bond
• D) A fixed market value for the investor

Comprehend the impact of demographics and gender on economic hardship and productivity.

Recognize the significance of both human and physical capital investment for economic development.

Understand the historical impacts of colonialism on developing nations.

Grasp the role of banking and financial institutions in economic development.

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Definitions:

Debenture

A type of debt instrument that is not secured by physical assets or collateral.

Subordinated Bond

A type of bond that has a lower priority than other bonds of the issuer in case of liquidation during bankruptcy.

Debenture

A type of debt instrument that is not secured by physical assets or collateral but based on the creditworthiness and reputation of the issuer.

Unsecured Debt

A type of debt or general obligation that is not protected by a guarantor, or collateralized by a lien on specific assets of the borrower.