Multiple choice

Which of the following best defines a floating-rate bond?

  1. A bond with a fixed interest rate and better yield than varying interest rate bond

  2. A bond with a fixed interest rate and lower yield than varying interest rate bond

  3. A bond with a varying interest rate and better yield than fixed interest rate bond

  4. A bond with a varying interest rate and lower yield than fixed interest rate bond

  5. None of these
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Correct option is (4).

Keep practicing — related questions