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:

Joint Stock Company

A business entity in which shares of the company's stock can be bought and sold by shareholders, and the ownership of which is divided among those shareholders.

Partnership Agreement

A document that outlines the rights, responsibilities, and obligations of each partner in a partnership.

Transferable Shares

Stocks or shares in a company that can be sold or transferred from one party to another without restrictions.

Limited Liability Companies

An organizational model that merges the direct tax benefits seen in partnerships or sole proprietorship with the benefit of reduced personal liability found in a corporation.