微信扫一扫
实时资讯全掌握
|
Allcans, an aluminum producer, needs to issue some debt to finance expansion plans, but wants to hedge its bond interest payments against fluctuations in aluminum prices. Jerrod Price, the company’s investment banker, suggests a non-interest rate index floater. This type of bond will provide all the following advantages EXCEPT: A. the bond agreement allows Allcans to set coupon payments based on business results. B. the bond's coupon rate is linked to the price of aluminum. C. the payment structure helps protect Allcan's credit rating. |