Floating Rate Bonds Provide the Following Advantage

question 110

Multiple Choice

Floating rate bonds provide the following advantage

• A) lower risk for the issuing corporation
• B) higher initial rate received by the investor
• C) higher tax advantages for the investor than a vanilla bond
• D) fixed market value for investor

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Definitions:

Rational Strategy-making

The process of decision-making in business that is based on logical reasoning, thorough analysis, and factual evidence.

Top Management

The highest tier of executives and decision-makers in an organization responsible for determining strategy and direction.

Scenario Writing

The process of creating detailed narratives or scenarios to explore future possibilities and assess potential outcomes.

Identifiable Factors

Elements or conditions that can be recognized and potentially measured, which influence outcomes or results in various situations.