Which of the following types of bonds protects a bondholder against increases in interest rates?

Name: Which of the following types of bonds protects a bondholder against increases in interest rates?
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Question

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Floating-rate bonds have interest rates that adjust periodically based on an underlying interest rate index, protecting the bondholder against increases in interest rates. As interest rates rise, the interest payments on these bonds will also increase, keeping pace with the market.

Which of the Following Types of Bonds Protects a Bondholder