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Unformatted text preview: collateral that must be forfeited in the event that the issuing firm defaults. These bonds do not have fixed interest payments; instead, the interest rate changes with current interest rates otherwise available in the economy. These bonds offer relatively high rates of interest because they have higher inherent risks....
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This note was uploaded on 03/12/2011 for the course BUSINESS 300 taught by Professor Reynolds during the Fall '10 term at Los Rios Colleges.
- Fall '10