Which One of the Following Risks Would a Floating-Rate Bond

question 78

Multiple Choice

Which one of the following risks would a floating-rate bond tend to have less of as compared to a fixed-rate coupon bond?

• A)real rate risk
• B)interest rate risk
• C)default risk
• D)liquidity risk
• E)taxability risk

---

Definitions:

Vastus Lateralis

A muscle located on the side of the thigh, important for knee extension and stabilizing the leg.

Deltoid Muscle

A large triangular muscle covering the shoulder joint, involved in arm rotation and lifting.

Dorsogluteal

An area of the buttocks used as a site for intramuscular injections, though less favored due to proximity to major nerves.

IV Piggyback

A method of administering medication where a secondary IV container is connected to the primary IV line to infuse medication, typically at a prescribed interval.