Which One of the Following Correctly Applies to Adjustable-Rate Bonds

question 82

Multiple Choice

Which one of the following correctly applies to adjustable-rate bonds?

• A) callable but not putable
• B) coupon rate equal to the U.S. Treasury bill rate
• C) greater interest rate risk than a fixed rate bond
• D) greater fluctuation in its market price than a fixed-rate bond
• E) frequently putable at par value

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