Which of the Following Is an Advantage of Floating Rate

question 114

Multiple Choice

Which of the following is an advantage of floating rate bonds to investors?

• A) They allow for locking in a multiplier of the initial investment.
• B) Their prices tend to be highly stable regardless of interest rate changes.
• C) They are sold at a deep discount.
• D) All of these.

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Definitions:

Expensive

High in price or requiring a significant amount of money to purchase.

Research

The systematic investigation into and study of materials and sources in order to establish facts and reach new conclusions.

Self-actualization

The achievement of one's abilities and possibilities, seen as a natural desire or motivation in all people.

Physiological

Relating to the branch of biology that deals with the normal functions of living organisms and their parts.