Question: Suggest if investors who expect interest rates to decrease would prefer to invest in variable-rate or fixed-rate bond. On the issuer side, would a firm

Suggest if investors who expect interest rates to decrease would prefer to invest in variable-rate or fixed-rate bond. On the issuer side, would a firm that needs to borrow funds consider issuing variable-rate bonds if it expects interest rates to decrease in the future? Could the firm in such conditions benefit from issuing low- or zero-coupon bonds? Explain your answer in detail.

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