What extent do floating-rate bonds and puttable bonds


Assignment

Bond prices can fall either because of a change in the general level of interest rates or because of an increased risk of default or a change in the real rate of return (otherwise known as opportunity cost of capital). To what extent do floating-rate bonds and puttable bonds protect the investor against each of these risks?

Be sure to support your statements with logic and argument, citing any sources referenced.

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Finance Basics: What extent do floating-rate bonds and puttable bonds
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