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Basic Question 0 of 4
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
describe how model misspecification affects the results of a regression analysis and how to avoid common forms of misspecification;
CFA® 2025 Level II Curriculum, Volume 1, Module 3.