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You have purchased an FRN that pays LIBOR +0.5%. What will happen to the value...

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Finance

You have purchased an FRN that pays LIBOR +0.5%. What will happen to the value of the FRN if the FED decreases interests rates and the credit spreads increase.

A. Remain constant

B. Fall

C. Uncertain

D. Increase

E. Not enough information

Answer & Explanation Solved by verified expert
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