Inv3702 investments - Study guides, Class notes & Summaries
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INV3702 ASSIGNMENT 1 SEMESTER 2.
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INV3702 ASSIGNMENT 1 
SEMESTER 2. Investments: Fixed Income Analysis. Which of the following statements is most accurate regarding floating-rate issues 
that have caps and floors? 
[1] A cap is an advantage to the bondholder, while a floor is an advantage to the 
issuer. 
[2] A floor is an advantage to the bondholder, while a cap is an advantage to 
the issuer. 
[3] A floor is an advantage to the issuer and the bondholder, while a cap is a 
disadvantage to the issuer and the bondholder. 
A cap i...
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