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

question 33

True/False

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

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Definitions:

Moral Behavior

Refers to actions that are guided by principles of right and wrong, ethics, or values.

Right and Wrong

Concepts pertaining to morality, ethics, and legality, defining what is considered acceptable and unacceptable behavior in society.

Autobiographical Memory

The aspect of memory that involves the recollection of personal experiences and events from an individual's life.

Social Role

The part individuals play in society as dictated by norms, expectations, and responsibilities associated with their position or status.