The primary advantage of investing in floating rate bonds is that the bonds will maintain a more stable market value within a reasonable limit.

Question

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Floating rate bonds are designed in such a way that their interest rates adjust according to the market changes, which helps in mitigating the interest rate risk. This means that the market value of floating rate bonds is less affected by changes in interest rates, resulting in a more stable market value compared to fixed-rate bonds.

The Primary Advantage of Investing in Floating Rate Bonds Is