GARP 2016-FRR Exam - Topic 1 Question 23 Discussion
Which one of the following four statements regarding floating rate bonds is incorrect?
C) Floating rate bonds are very sensitive to changes in interest rates.
A) Floating rate bonds have coupon payments tied to floating interest rates or floating interest rate indexes.
B) Floating rate bonds typically have less price risk than fixed rate bonds.
D) Floating rate bonds only have a small degree of interest rate risk.
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