Floating-rate debt is advantageous to investors because the interest rate moves up if market rates rise.Since floating-rate debt shifts interest rate risk to companies, it offers no advantages to issuers.

Question

Quizplus · Accepted Answer

floating rates can benefit issuers if rates decline, so a company that thinks rates are likely to fall would want to issue such bonds.

Floating-Rate Debt Is Advantageous to Investors Because the Interest Rate