Which One of the Following Risks Would a Floating-Rate Bond

question 78

Multiple Choice

Which one of the following risks would a floating-rate bond tend to have less of as compared to a fixed-rate coupon bond?

• A)real rate risk
• B)interest rate risk
• C)default risk
• D)liquidity risk
• E)taxability risk

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Definitions:

Voir Dire

A process in court where jurors are questioned by judges and lawyers to determine if they are suitable for jury service.

Arbitration

A method of dispute resolution outside of courts where an arbitrator makes a decision which is binding to both parties.

Litigation

The process of resolving disputes or controversies by filing lawsuits in court.

Mediation

A form of alternative dispute resolution where a neutral third party helps the disputing parties come to a mutually agreeable solution.