General Question

[thunderbird]

One of the questions I was doing stated that Mr X would like to hedge the interest rate risk of one of his bonds, a floating-rate bond.
Does it imply that Mr X is the issuer of the bond and hence makes coupon payments at floating rate or does it mean that Mr X has invested in a floating rate bond wherein he receives coupon payments at floating rate?

 

[bfry]

There has to be more context than that because if you are long the bond your interest rate risk is if the coupon/market rates decline yet if you are the issuer then your risk is if rates rise. The complete opposite effect. The answer choices may give you clues as well - its just hard to say without reading the whole vignette/questions.