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

---

Definitions:

Fluoresce

The property of absorbing light of one wavelength and then emitting light of a longer wavelength, visible as a bright glow under certain conditions.

Chloroplasts

Organelles found in plant cells and eukaryotic algae that conduct photosynthesis, converting light energy into chemical energy.

CAM Plants

Plants that use Crassulacean Acid Metabolism, a photosynthetic adaptation that allows them to minimize water loss by opening their stomata at night.

Stomata

Tiny openings or pores in plant leaves and stems that control gas exchange for photosynthesis and respiration.