A corporation is more prone to issue floating-rate bonds when they expect future interest rates to _____ over the life of the bond.

Question

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Corporations are more likely to issue floating-rate bonds when they expect future interest rates to continually decline. This is because the interest payments on floating-rate bonds will decrease along with declining rates, reducing the corporation's cost of borrowing over time.

A Corporation Is More Prone to Issue Floating-Rate Bonds When