The desire for floating-rate bonds, and consequently their increased usage, arose out of the experience of the early 1980s, when inflation pushed interest rates up to very high levels and thus caused sharp declines in the prices of outstanding bonds.

Question

Quizplus · Accepted Answer

The statement accurately describes the historical context in which the demand for floating-rate bonds emerged.

The Desire for Floating-Rate Bonds, and Consequently Their Increased Usage