Floating Rate Bonds

question 68

Multiple Choice

Floating rate bonds:

• A) have interest payments based on coupon rates.
• B) have no capacity for constant market value.
• C) usually have very broad limits that interest payments cannot exceed.
• D) have a floating maturity date.

---

Definitions:

Financial Managers

Professionals responsible for the financial health of an organization, overseeing investment activities and long-term financial planning.

Ethical Investors

Ethical investors focus on investing in companies that adhere to specific ethical or moral guidelines, such as environmental sustainability or social responsibility.

Net Profit

The actual profit after operating expenses, interest, taxes, and depreciation have been deducted from total revenues; it is the bottom line of the income statement.

Shareholder Wealth

The total value of an investment in a company, often measured by the price of the company's stock multiplied by the number of shares owned.