In general, how often are floating rate bonds adjusted to meet the market conditions?

Question

Quizplus · Accepted Answer

Floating rate bonds typically have interest rates that are adjusted based on a benchmark rate (such as LIBOR) plus a margin. The frequency of these adjustments is typically either monthly or quarterly, depending on the terms of the bond. Daily adjustments would be too frequent, while annual adjustments would not allow the bond's interest rate to keep pace with current market conditions. Weekly adjustments are not common, but could be possible depending on the specific bond's terms.

In General, How Often Are Floating Rate Bonds Adjusted to Meet