1.

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

A. A bond with a fixed interest rate and has better yield than varying interest rate bond
B. A bond with a fixed interest rate and has lower yield than varying interest rate bond
C. A bond with a varying interest rate and has better yield than fixed interest rate bond
D. A bond with a varying interest rate and has lower yield than fixed interest rate bond
Answer» C. A bond with a varying interest rate and has better yield than fixed interest rate bond


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