Q. Which of the following best defines a floating-rate bond?
Answer: A bond with a fixed interest rate and has lower yield than varying interest rate bond
Notes: Floating rate bonds have variable interest rate and protect investors against a rise in interest rates (which have an inverse relationship with bond prices). They also carry lower yields than fixed notes of the same maturity.

This question is part of 40000+ General Studies MCQ Series Course on GKToday Android app. Question Number: 7 in General Studies Mock Test - 64 in above course in App.