The Desire for Floating-Rate Bonds, and Consequently Their Increased Usage

question 28

True/False

The desire for floating-rate bonds, and consequently their increased usage, arose out of the experience of the early 1980s, when inflation pushed interest rates up to very high levels and thus caused sharp declines in the prices of outstanding bonds.

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Definitions:

Probability

A gauge of the probability that an event will occur, expressed numerically between 0 and 1.

Manufacturing Process

The series of operations or stages involved in the production of goods, often involving the assembly or transformation of raw materials.

Probability

Probability is the measure of the likelihood that an event will occur, quantified as a number between 0 and 1.

Canada Revenue

Denotes the federal agency responsible for the collection of taxes and the administration of tax laws and policies in Canada.