Q601
Rate on debt that increases as soon market rises is classified as
A.
rising bet rate
B.
floating rate debt
AnswerC.
market rate debt
D.
stable debt rate
Answer: Option B
Solution
Answer: Option B
Solution:
Rate on debt that increases as soon market rises is classified as floating rate debt. A bond or other type of debt whose coupon rate changes with market conditions (short-term interest rates).