Floating Rate Bonds Often Have Yields Tied To

question 49

Multiple Choice

Floating rate bonds often have yields tied to:

• A)London Interbank Offered Rate (LIBOR)plus some percentage yield amount.
• B)London Interbank Offered Rate (LIBOR).
• C)European Central Bank (ECB)borrowing rate.
• D)Federal Funds overnight lending rate.

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Definitions:

Equation

An equation is a mathematical statement that asserts the equality of two expressions, typically including one or more variables.

Decimal Places

The number of digits to the right of the decimal point in a number, indicating the precision or fraction part.

Percent

A part per hundred ratio, a way of expressing a number as a fraction of 100.

Decimal

A number representing a fraction or a whole number using a point to separate the whole part from the fractional part.