Consider three securities: a. A floating-rate bond. b. A preferred share paying a fixed dividend. c. A
Question:
a. A floating-rate bond.
b. A preferred share paying a fixed dividend.
c. A floating-rate preferred.
If you were responsible for short-term investment of your firm’s excess cash, which security would you probably prefer to hold? Why? Explain briefly.
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Related Book For
Principles of Corporate Finance
ISBN: 978-0077404895
10th Edition
Authors: Richard A. Brealey, Stewart C. Myers, Franklin Allen
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