What is the term for debt with an interest rate that adjusts upward when the market increases?

Bonds and Bond Valuation MCQs for PPSC, FPSC, NTS, and Pakistan government job tests. Select an option below, then read the explanation.

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Subject
Bonds and Bond Valuationfinance-mcqs › bonds-and-bond-valuation
Published
13 Jan 2019
Last updated
28 May 2026

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Explanation

The correct answer is 'Variable interest debt,' also known as floating rate debt, where the interest rate fluctuates in response to market conditions, rising as the market rate goes up.

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