Floating-Rate Bonds Are Designed to ___________ While Convertible Bonds Are

question 86

Multiple Choice

Floating-rate bonds are designed to ___________ while convertible bonds are designed to __________.

• A)minimize the holders' interest rate risk; give the investor the ability to share in the price appreciation of the company's stock
• B)maximize the holders' interest rate risk; give the investor the ability to share in the price appreciation of the company's stock
• C)minimize the holders' interest rate risk; give the investor the ability to benefit from interest rate changes
• D)maximize the holders' interest rate risk; give investor the ability to share in the profits of the issuing company
• E)None of the options