The variability of the coupon rate on a Libor-based floating-rate bond is most likely caused by: A.

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The variability of the coupon rate on a Libor-based floating-rate bond is most likely caused by:

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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Fixed Income Analysis

ISBN: 9781119627289

4th Edition

Authors: Barbara S. Petitt

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Question Posted: Nov 05, 2023 12:16 AM

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The variability of the coupon rate on a Libor-based floating-rate bond is most likely caused by: A.

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The answer is A Periodic resets of the reference rate The coupon rate on a Liborbased floatingrate b...View the full answer

Fixed Income Analysis

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