Floating rate bonds are bonds with:
A) floating par values tied to the stock par value.
B) floating maturities tied to the expected corporate life.
C) floating call provisions indexed by relative interest rates.
D) floating coupon rates tied to an interest rate index.

Question

Quizplus · Accepted Answer

Floating rate bonds have coupon rates that are adjusted periodically based on a benchmark interest rate index, such as LIBOR or the Federal Funds Rate, allowing the interest payments to fluctuate over time.

Floating Rate Bonds Are Bonds With