A(n)____ Contract Is an Arrangement Whereby the Coupon Rate on a Note

question 71

Multiple Choice

A(n) ____ contract is an arrangement whereby the coupon rate on a note moves in the opposite direction of some variable rate index.

• A) Inverse floating rate
• B) Reverse floating rate
• C) Backward floating rate
• D) Opposing floating rate
• E) Defensive floating rate

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Definitions:

Irrevocable

Refers to something that cannot be altered, canceled, or taken back once it has been established or issued.

Revokes

The act of officially cancelling or withdrawing an offer, license, right, or law.

Wholly Inconsistent

Completely incompatible or not in harmony with prior acts, statements, or legal precedents.

Charitable Trust

A trust established for charitable purposes, benefiting the public or a segment of the public in a philanthropic manner.