Floating-rate debt is advantageous to investors because the interest rate moves up if market rates rise. Since floating-rate debt shifts price risk to companies, it offers no advantages to corporate issuers.

Answer the following statement true (T) or false (F)


False

Rationale: Floating rates can benefit issuers if rates decline, so a company that thinks rates are likely to fall would want to issue such bonds.

Business

You might also like to view...

Some experts recommend devoting about ________ of the total writing time to the third phase of the writing process

A) 10 percent B) 30 percent C) 50 percent D) 75 percent

Business

A supply chain for talent acquisition ends with a potential labor pool of individuals who might eventually become applicants.

Answer the following statement true (T) or false (F)

Business

After a patent expires, the invention is dedicated to the public

a. True b. False Indicate whether the statement is true or false

Business

What is the probability that less than two of the 20 new microwaves sold will require a warranty repair in the first 90 days?

Business