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

Question

Quizplus · Accepted Answer

The description in the statement matches that of floating rate bonds, which have a stated interest rate that fluctuates within set limits according to changes in certain market rates. Junk bonds carry higher credit risks and typically do not have adjustable interest rates. Extendible notes and putable bonds have special features related to their maturity dates and redemption options but do not necessarily have adjustable interest rates.

The Stated Interest Rate on ________ Is Adjusted Periodically Within