Bonds may trade at prices different than their par values

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Reference no: EM132055633

Which of the following is least likely a reason that floating rate bonds may trade at prices different than their par values?

a. A time lag exists between the rate change in the market and the time when the coupon is reset

b. The fixed quoted margin on the floating rate security may differ from the margin required by the market

c. Resetting interest rates makes floating rate bonds more susceptible to the price risk that results from changing interest rates

Reference no: EM132055633

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