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:

Hormonal Communications

A process within the endocrine system where glands produce hormones that are released into the bloodstream to regulate bodily functions.

Neural Communications

The process by which neurons transmit signals through synapses to communicate with other neurons, muscles, or glands.

Anterior Pituitary

The front portion of the pituitary gland, which releases hormones controlling a variety of physiological processes including growth, reproduction, and metabolism.

Posterior Pituitary

The posterior pituitary is the rear part of the pituitary gland and releases important hormones like oxytocin and vasopressin directly into the bloodstream.