A company issues floating-rate bonds. The coupon rate is expressed as the threemonth Libor plus a spread.
Question:
A company issues floating-rate bonds. The coupon rate is expressed as the threemonth Libor plus a spread. The coupon payments are most likely to increase as:
A. Libor increases.
B. The spread increases.
C. The company’s credit quality decreases.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
A is correct The coupon payments of a floatingrate bond ...View the full answer
Answered By
Samina Sitabkhan
Teaching
Substitute Teacher (September 1992 - June 1994) Cleveland Metropolitan School District. Cleveland, Ohio. Covered for teachers in grades 1-12 in different subjects.
Specific Learning Disability Tutor (August 1994 - June 2006) Cleveland Metropolitan School District. Cleveland, Ohio. Successfully tutored students with a Specific Learning Disability (SLD) in reading, writing & math in grades 2-8 in both public & nonpublic schools. Collaborated with classroom teachers, assessed students, wrote IEPS, ISPs & held parent conferences.
NonPublic School Services (NPSS) Tutor (August 2006 - May 2018) Columbus City Schools. Columbus, Ohio. Successfully provided remedial tutoring in reading & math under the Title 1 Program in various nonpublic schools. Traveled between 2 schools every day. Pretested & post-tested students using the STAR Reading & Math Renaissance test. Completed all federal paperwork in a timely manner including the completion of parent involvement activities.
NonPublic School Services (NPSS) Tutor (August 2018 - present) Columbus City Schools. Columbus, Ohio. Tooba Academy. Successfully provide remedial tutoring in reading under the Title 1 Program. Pretest & post-test students using the STAR Reading Renaissance test. Complete all federal paperwork in a timely manner including the completion of parent involvement activities.
0 Reviews
10+ Question Solved
Related Book For 
Question Posted:
