Floating-Rate Notes

question 6

Multiple Choice

Floating-rate notes

• A)are a form of adjustable rate bond.
• B)have contractually specified coupon payments,therefore they are fixed rate bonds.
• C)always trade at par value.
• D)are a form of adjustable rate bond and always trade at par value.

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Definitions:

Personal Use

The employment of an asset or resource for individual rather than business or commercial purposes.

Division of Income

The method by which a company's profit is distributed among its various stakeholders, including shareholders, employees, and sometimes the government in the form of taxes.

General Partnership

A type of partnership where all partners share equally in both the management responsibilities and the liabilities of the business.

Limited Partnership

A partnership with at least one general partner who manages the business and is liable for debts, and one or more limited partners who are only liable to the extent of their investment.