On ________, the stated interest rate is adjusted periodically within stated limits in response to changes in specified money or capital market rates.

Question

Quizplus · Accepted Answer

A floating rate bond has a stated interest rate that is adjusted periodically within stated limits in response to changes in specified money or capital market rates. Zero coupon bonds do not have periodic interest payments, mortgage bonds are secured by a mortgage on specific property, and equipment trust certificates are linked to the performance of specific equipment.

On ________, the Stated Interest Rate Is Adjusted Periodically Within