Asked by Diana Mitrea Stoicescu on Jul 18, 2024
Verified
Adjustable maturity dates is a common characteristic of floating-rate bonds.
Adjustable Maturity Dates
Adjustable maturity dates refer to the flexibility allowed in the due dates of financial instruments, allowing for changes in the repayment schedule.
Floating-Rate Bonds
Bonds with variable interest rates that adjust periodically based on a benchmark interest rate or index.
- Familiarize oneself with the factors that influence the risk related to interest rates on bonds, highlighting the coupon rate, time until maturity, and bond specifications.
Verified Answer
YY
yanetsy yglesiasJul 20, 2024
Final Answer :
False
Explanation :
Floating-rate bonds typically have interest rates that reset periodically, not adjustable maturity dates. The maturity date of a bond is usually fixed and not subject to adjustment.
Learning Objectives
- Familiarize oneself with the factors that influence the risk related to interest rates on bonds, highlighting the coupon rate, time until maturity, and bond specifications.
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