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Which One of the Following Correctly Applies to Adjustable-Rate Bonds

Question 47

Multiple Choice

Which one of the following correctly applies to adjustable-rate bonds?


A) callable but not putable
B) coupon rate equal to the U.S. Treasury bill rate
C) greater interest rate risk than a fixed rate bond
D) greater fluctuation in its market price than a fixed-rate bond
E) frequently putable at par value

Correct Answer:

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