Floating-Rate Notes (FRN)

question 51

Multiple Choice

Floating-rate notes (FRN)

• A)experience very volatile price changes between reset dates.
• B)are typically medium-term bonds with coupon payments indexed to some reference rate (e.g. LIBOR).
• C)appeal to investors with strong need to preserve the principal value of the investment should they need to liquidate prior to the maturity of the bonds.
• D)both b and c

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Definitions:

Political Economy

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