What is a floating-rate bond?
A floating-rate bond is one that is issued by a company and attracts a variable interest rate. It is tied to a benchmark reference rate and mimics changes in it. It’s different from a fixed-rate bond, whose interest rate doesn’t fluctuate. Floating-rate bonds are beneficial for investors when interest rates are rising. It ensures that an investor’s debt portfolio moves in tandem with the interest rates in an economy.
Courtsey : Upstox (start Karke Dekho)
For more about Upstox - Read more....
Comments
Post a Comment