Quiz Ch 07 – T/F Advantages and Disadvantages of Floating-Rate Debt for Investors and Issuers

Fundamentals of Financial Management, Concise

Brigham and Houston

09th Edition

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True or false: Floating-rate debt benefits investors by adjusting interest rates upward with market rate increases. However, it also shifts price risk to companies, making it disadvantageous for corporate issuers.

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  • Search Terms: a. b. false true advantageous advantages because companies, corporate debt floating-rate if interest investors is issuers. it market moves no offers price rate rates rise. risk shifts since the to up
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