Floating Rate Bonds Are Most Likely to Be Popular When

question 8

Multiple Choice

Floating rate bonds are most likely to be popular when it is anticipated that:

• A) interest rates will stay the same.
• B) interest rates will go down.
• C) interest rates will go up.
• D) short-term interest rates will be higher than long-term interest rates.

---

Definitions:

Empirical

Pertaining to or based on observation or experience rather than theory or pure logic.

Investigate

the action of carrying out research or systematic inquiry to discover facts or information about a subject, often involving the collection of evidence.

Human Behaviour

The range of actions, conduct, and responses exhibited by humans, influenced by culture, attitudes, emotions, values, ethics, and the external environment.

Free Will

The concept that humans have the ability to make choices that are not pre-determined by past events or natural laws.