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    Financial Management Theory and Practice Study Set 4
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    Exam 5: Bonds, Bond Valuation, and Interest Rates
  5. Question
    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 15

Question 15

True/False

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

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