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    Fixed Income Analysis
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    Exam 1: Fixed-Income Securities: Defining Elements
  5. Question
    If Interest Rates Are Expected to Increase, the Coupon Payment
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If Interest Rates Are Expected to Increase, the Coupon Payment

Question 23

Question 23

Multiple Choice

if interest rates are expected to increase, the coupon payment structure most likely to ben- efit the issuer is a:


A) step-up coupon.
B) inflation-linked coupon.
C) cap in a floating-rate note.

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