Floating-Rate Notes (FRN)

question 19

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)b and c

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Definitions:

Tight Cultures

Cultures that have strict norms and expectations for behavior, leading to less tolerance for deviation from these norms.

Social Norms

Rules that a society or group uses to determine appropriate and inappropriate values, beliefs, attitudes, and behaviors.

High-context Cultures

Cultures in which communication relies heavily on contextual and non-verbal cues, with less emphasis on explicit, direct language.

Low-context Cultures

In low-context cultures, communication is direct, and meanings are explicitly stated in words, relying less on context, non-verbal cues, or background knowledge.