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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Definitions:

Mesozoic

The geological era that lasted from about 252 to 66 million years ago, including the time of dinosaurs and the break-up of Pangaea.

Disconformity

A type of unconformity in the geologic record that represents a period of erosion or non-deposition between layers of sedimentary rock, where the rock layers are parallel but there is a noticeable gap in the geological time recorded.

Preserved Fossil

A remnant or impression of an organism from a past geologic age that has been preserved in rock.

Hard Parts

Refers to the durable skeletal elements of organisms, such as bones and shells, which are commonly preserved in the fossil record.