The Market Value of Floating-Rate Debt of $200,000 Will

question 53

Multiple Choice

The market value of floating-rate debt of $200,000 will

• A)rise by $2,000 with a 1% rise in interest rates.
• B)fall by $2,000 with a 1% fall in interest rates.
• C)remain unchanged with a change in interest rates.
• D)will rise in the short run and fall in the long run with a change in interest rates.

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