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Floating Rate Bonds vs Fixed Rate Bonds: Which Is Better?
When I speak to new investors about bonds, one question comes up quite often: should I choose a fixed rate bond or a floating rate bond? At first, both may look similar because they are debt instruments and usually pay interest at regular intervals. But the way that interest is decided makes a meaningful difference. A fixed rate bond is the simpler one to understand. The coupon rate is decided...
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