Floating-rate bonds are bonds that can be redeemed at par at the option of their holder either on a specific date after the date of issue and every 1 to 5 years thereafter or when and if the firm takes specified actions such as being acquired, acquiring another company, or issuing a large amount of additional debt.

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Floating-rate bonds have variable interest rates that are tied to an external benchmark, such as LIBOR, and fluctuate as the benchmark rate changes. They do not have specific redemption dates or trigger events like described in the statement.

Floating-Rate Bonds Are Bonds That Can Be Redeemed at Par