Asked by
Irene Solorzano
on Nov 08, 2024
Verified
A bond that pays a variable amount of coupon interest over time is called a ____________ bond.
A) Treasury.
B) Municipal.
C) Floating rate.
D) Junk.
E) Zero-coupon.
Floating Rate Bond
A type of bond whose interest payments vary with changes in market interest rates, also known as a floater or variable rate bond.
Variable Amount
A sum that can change over time or depending on conditions, in contrast to a fixed amount.
Coupon Interest
The fixed interest rate paid by a bond, typically annually or semi-annually.
- Illustrate the process of determining the value and pricing of bonds, particularly zero-coupon and floating-rate bonds.
Verified Answer
AL
Learning Objectives
- Illustrate the process of determining the value and pricing of bonds, particularly zero-coupon and floating-rate bonds.