Which one of the following risks would a floating-rate bond tend to have less of as compared to a fixed-rate coupon bond?

Question

Quizplus · Accepted Answer

A floating-rate bond tends to have less interest rate risk than a fixed-rate coupon bond because the coupon rate on a floating-rate bond resets periodically based on a benchmark rate, such as LIBOR, which helps to limit any fluctuations in the bond's price due to changes in interest rates.

Which One of the Following Risks Would a Floating-Rate Bond