In General, How Often Are Floating Rate Bonds Adjusted to Meet

question 81

Multiple Choice

In general, how often are floating rate bonds adjusted to meet the market conditions?

• A) Daily
• B) Weekly
• C) Monthly or Quarterly
• D) Annually

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Definitions:

Loaned Funds

Money that is borrowed, typically from a financial institution, which requires repayment with interest.

Coupon Rate

The percentage of the face value that is paid as interest on a bond annually.

Dividend Growth Model

A valuation method that estimates the price of a stock based on the assumption that dividends will increase at a constant growth rate.

Expected Growth Rate

The anticipated rate at which a company, asset, or economy is expected to grow in the future.