Floating-rate bonds have a ________ that is adjusted with current market interest rates.

Question

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The coupon rate on a floating-rate bond is adjusted with current market interest rates, which is what makes these bonds "floating rate." The maturity date is the date when the bond reaches the end of its term, while the coupon payment date is the date when the bondholder receives interest payments. The dividend yield is a measure of the income generated by a stock, not a bond.

Floating-Rate Bonds Have a ________ That Is Adjusted with Current