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:

Frontal Lobes

The part of the cerebral cortex that lies at the front of the brain, associated with reasoning, planning, parts of speech, movement, emotions, and problem solving.

Hippocampus

A brain region involved in memory formation, navigation, and emotional processing.

Hypothalamus

A neural structure located below the thalamus; it directs several maintenance activities (eating, drinking, body temperature), helps govern the endocrine system via the pituitary, and is linked to emotion and reward.

Violent Crime

A category of crime that involves force or the threat of force against a person, including offenses like murder, assault, and robbery.