medium · Debt Capital Markets bond-instruments-structures
What is the primary difference between SOFR and the 'Prime Rate' used in ABR?
- Prime changes every day, while SOFR only changes once per month
- SOFR is used only for corporate bonds and not for syndicated bank loans
- Prime is a fully secured rate, while SOFR is an unsecured reference rate
- SOFR is transaction-based, while Prime is a set administered rate
Sign up free to see the explanation and track your rank →
More Debt Capital Markets bond-instruments-structures practice
- What does a 5-year bond described as 'NC2' signify regarding its call protection?
- Which of the following describes a 'step-up' coupon in a callable bond?
- Which type of investor is a 'natural buyer' of floating-rate notes due to their need to ma
- A 102 call premium is equivalent to paying:
- If a bond is 'callable at par,' what is the issuer's redemption cost per $1,000 of face va
- What is a 'call schedule' for a corporate bond?
- What is meant by the term 'compounding in arrears' for a SOFR-based floating-rate note?
- What is a 'deferred call'?