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The Variability of the Coupon Rate on a Libor-Based Floating-Rate

Question 12

Multiple Choice

The variability of the coupon rate on a libor-based floating-rate bond is most likely due to:


A) periodic resets of the reference rate.
B) market-based reassessments of the issuer's creditworthiness.
C) changing estimates by the libor administrator of borrowing capacity.

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