Busıness Fınance Iı Deneme Sınavı Sorusu #973721

What is it called if the interest rate is floating and not fixed in bond issues?


Convertible bond

Common index

Callable bond

Indexed bond

Price index


Yanıt Açıklaması:

In bond issues, if the interest rate is floating and not fixed, then it is called as an indexed bond. The index can be any economic indicator but mostly it is a price index, such as the inflation rate, the oil price or the gold price index. The correct answer is D.

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