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    Question

    Under what circumstances does a drop lock bond convert

    from a floating rate to a fixed rate bond?
    A If the interest rate falls below the predetermined level Correct Answer Incorrect Answer
    B At the discretion of the bond issuer Correct Answer Incorrect Answer
    C If the interest rate rises above the predetermined level Correct Answer Incorrect Answer
    D At the maturity date of the bond Correct Answer Incorrect Answer

    Solution

    The correct answer is A

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