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Which of the following statements is TURE with regard to floating-rate issues that have caps and floors? Question 5Answer a. A cap is an advantage
Which of the following statements is TURE with regard to floating-rate issues that have caps and floors? Question 5Answer a. A cap is an advantage to the bondholder, while a floor is an advantage to the issuer. b. A floor is a disadvantage to both the issuer and the bondholder, while a cap is a disadvantage to both the issuer and the bondholder. c. A floor is an advantage to both the issuer and the bondholder, while a cap is a disadvantage to both the issuer and the bondholder. d. A floor is an advantage to the bondholder, while a cap is an advantage to the issuer
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