Floating Rate Bonds

question 71

Multiple Choice

Floating rate bonds:

• A) have interest payments based on some overall market rate.
• B) have the capacity for highly variable market value.
• C) usually have very narrow limits that interest payments cannot exceed.
• D) have flexible maturity dates.

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Definitions:

Self-control

Self-control is the ability to regulate one's emotions, thoughts, and behavior in the face of temptations and impulses.

Equity Theory

An assumption that how much people are willing to contribute to an organization depends on their assessment of the fairness, or equity, of the rewards they will receive in exchange.