Floating-Rate Debt Is Advantageous to Investors Because the Interest Rate

question 15

True/False

Floating-rate debt is advantageous to investors because the interest rate moves up if market rates rise.Since floating-rate debt shifts interest rate risk to companies, it offers no advantages to issuers.

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Definitions:

Canadian Psychological Association

The primary national organization for the science, practice, and education of psychology in Canada.

Psychology

The scientific study of the mind and behavior, including understanding mental functions, brain activities, and social interactions.

Canada

A country located in the northern part of North America, known for its multicultural population, bilingual French-English heritage, and vast natural landscapes.

Ph.D. in Psychology

A Doctorate of Philosophy in Psychology, an advanced graduate degree focusing on original research, theoretical foundations, and practical application in the field of psychology.