On a Reset Date, Floating-Rate Notes

question 35

Multiple Choice

On a reset date, floating-rate notes

• A)experience very volatile price changes.
• B)market price will usually gravitate toward par.
• C)market price will usually gravitate toward par, unless the borrowers credit rating has declined.
• D)both b and c

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Definitions:

Terror

An intense, overwhelming fear, often experienced suddenly and with a high degree of psychological stress or discomfort.

Anxiety Sensitivity

A tendency to focus on one’s bodily sensations, assess them illogically, and interpret them as harmful.

Interpretation

The process of explaining or understanding the meaning of something, such as a text, action, or event, often based on personal perspectives or evidence.

Bodily Sensations

Refers to physical feelings or perceptions resulting from the condition of the body, including pain, temperature, and touch.