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Basic Question 0 of 8
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 |
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Learning Outcome Statements
explain systematic and nonsystematic risk, including why an investor should not expect to receive additional return for bearing nonsystematic risk
CFA® 2025 Level I Curriculum, Volume 2, Module 2.