Workplace Furniture is an e-commerce company that sells office furniture. In an attempt to raise long-term funds, the company decides to issue bonds to lenders. These bonds do not have fixed interest payments, and the rate of interest changes depending on economic conditions. The bonds issued by Workplace Furniture are examples of ________ bonds.

Question

Quizplus · Accepted Answer

The bonds issued by Workplace Furniture are examples of floating-rate bonds. Floating-rate bonds do not have fixed interest payments; instead, the interest rate changes with current interest rates otherwise available in the economy.

Workplace Furniture Is an E-Commerce Company That Sells Office Furniture