Floating-Rate Debt Is Advantageous to Investors Because the Interest Rate

question 8

True/False

Floating-rate debt is advantageous to investors because the interest rate moves up if market rates rise.Since floating-rate debt shifts interest rate risk to companies, it offers no advantages to issuers.

---

Definitions:

Democrats

A member or supporter of the Democratic Party in the United States, known for its liberal policies on social issues and emphasis on government intervention in the economy.

Republicans

A member of the Republican Party, one of the two major contemporary political parties in the United States, often associated with conservative and right-leaning policies.

Fair Deal

A set of proposals put forward by U.S. President Harry S. Truman to Congress in 1949 aimed at improving social welfare and civil rights.

Harry S. Truman

The 33rd President of the United States, serving from 1945 to 1953, known for implementing the Marshall Plan and leading the country through the end of World War II.