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Sometimes floating rate issues have caps and/or floors, which limit the maximum or minimum coupon rate that the issue will pay. Which of the following statements is CORRECT with regard to floating rate issues that have caps and floors? A. A cap is a disadvantage to the bondholder while a floor is a disadvantage to the issuer. B. A floor is a disadvantage to both the issuer and the bondholder while a cap is an advantage to both the issuer and the bondholder. C. A cap is an advantage to the bondholder while a floor is an advantage to the issuer. |