The bonds that do not offer protection to the investor against increases in market interest rates are:

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A. Step-up bonds.

B. Floating-rate notes.

C. Inverse floating-rate notes.

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Fixed Income Analysis

ISBN: 9781119850540

5th Edition

Authors: Barbara S. Petitt

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Question Posted: Nov 05, 2023 12:17 AM

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The bonds that do not offer protection to the investor against increases in market interest rates are:

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C is correct The coupon rate on an inverse FRN has an inverse relatio...View the full answer

Fixed Income Analysis

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