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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 |
I am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach
Learning Outcome Statements
describe the relation between the long-run rate of stock market appreciation and the sustainable growth rate of the economy;
explain why potential GDP and its growth rate matter for equity and fixed income investors;
CFA® 2025 Level II Curriculum, Volume 1, Module 9.