Floating rate bonds often have yields tied to:
A)London Interbank Offered Rate (LIBOR)plus some percentage yield amount.
B)London Interbank Offered Rate (LIBOR).
C)European Central Bank (ECB)borrowing rate.
D)Federal Funds overnight lending rate.

Question

Quizplus · Accepted Answer

Floating rate bonds often have yields tied to an underlying benchmark such as the London Interbank Offered Rate (LIBOR), which is a widely accepted reference rate for short-term interest rates. The bond's yield is then set at a fixed percentage amount above this benchmark rate, which means that the yield on the bond will adjust over time in response to changes in the benchmark rate.

Floating Rate Bonds Often Have Yields Tied To