- CFA Exams
- CFA Level I Exam
- Study Session 14. Fixed Income (1)
- Reading 44. Introduction to Fixed-Income Valuation
- Subject 6. Yield Measures for Floating-Rate Notes and Money Market Instruments
CFA Practice Question
On the coupon reset date, which of the following is likely to have the biggest impact on a floater's price?
A. A higher market interest rate
B. A lower market interest rate
C. A smaller required margin
Explanation: In principle, a floater has a stable price even in a period of volatile interest rates.
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