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Basic Question 0 of 11
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
calculate and evaluate the predicted trend value for a time series, modeled as either a linear trend or a log-linear trend, given the estimated trend coefficients;
describe factors that determine whether a linear or a log-linear trend should be used with a particular time series and evaluate limitations of trend models;
explain the requirement for a time series to be covariance stationary and describe the significance of a series that is not stationary;
CFA® 2025 Level II Curriculum, Volume 1, Module 5.