You believe interest rates will soon fall.a.Would you rather own a three-year,6 percent coupon,fixed-rate bond or an equivalent-risk,three-year,floating-rate bond currently paying 6 percent interest?
b.Would your answer to (a)change if you were contemplating issuing a bond rather than owning one? If so,how?
c.Would your answer to (a)change if,as an investor,you believed interest rates would soon rise? If so,why?

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The Answer of You believe interest rates will soon fall.a.Would you rather own a three-year,6 percent coupon,fixed-rate bond or an equivalent-risk,three-year,floating-rate bond currently paying 6 percent interest?
b.Would your answer to (a)change if you were contemplating issuing a bond rather than owning one? If so,how?
c.Would your answer to (a)change if,as an investor,you believed interest rates would soon rise? If so,why?

You Believe Interest Rates Will Soon Fall