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    Fundamentals of Financial Management Study Set 1
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    Exam 7: Bonds and Their Valuation
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    Floating-Rate Debt Is Advantageous to Investors Because the Interest Rate
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Floating-Rate Debt Is Advantageous to Investors Because the Interest Rate

Question 33

Question 33

True/False

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.

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