DoneWithCFA3
New member
- May 29, 2012
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One of the answers in Schweser’s online question says that
“Cap risk is a particular concern to investors who borrow at a floating rate.” . This statement seems inaccurate.
Can risk is a concern for one who buys a bond (LENDS MONEY) and receives floating rate coupon. Cap HELPS one who borrows at floating rate, right?
“Cap risk is a particular concern to investors who borrow at a floating rate.” . This statement seems inaccurate.
Can risk is a concern for one who buys a bond (LENDS MONEY) and receives floating rate coupon. Cap HELPS one who borrows at floating rate, right?