The Purpose of a Floating-Rate Bond Is To

question 65

Multiple Choice

The purpose of a floating-rate bond is to:

• A) save interest expense for corporate issuers.
• B) avoid making interest payments until maturity.
• C) shift the yield curve.
• D) offer rates that adjust to current market conditions.

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Definitions:

Decentralised Organisation

An organizational structure in which decision-making authority is distributed among various levels and departments, promoting agility and faster decision-making.

Autonomous Managers

Autonomous managers are individuals who have the independence and authority to make decisions and manage operations without constant oversight from higher management levels.

Revenue Centre Manager

An individual responsible for generating income and managing the revenue-related activities within a specific area of an organization.

Investment Centre Manager

An individual responsible for managing a business segment that is evaluated based on its return on investment or profitability, having authority over costs, revenues, and investments.