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Basic Question 1 of 17
Floating-rate bonds have adjustable rates to protect real rates of return against inflation. The rates paid are limited by ______.
II. a floor rate that sets the minimum
III. a cap rate that sets the maximum
I. the put provisions of the issues
II. a floor rate that sets the minimum
III. a cap rate that sets the maximum
User Contributed Comments 2
| User | Comment |
|---|---|
| RCapistrano | Protect both bond issuers(III) and holders(II). |
| 2014 | If modified question Protection only to bondholders: floor rate Protection only to issuers: Cap rate |
I used your notes and passed ... highly recommended!
Lauren
Learning Outcome Statements
describe how cash flows of fixed-income securities are structured;
CFA® 2024 Level I Curriculum, Volume 4, Module 42.