Final answer:
A floating-rate bond often has a flexible deferred call period, allowing for early redemption by the issuer. It provides flexible coupon payments that adjust with market interest rates, rather than having a fixed yield to maturity.
Step-by-step explanation:
Floating-Rate Bond Features
A floating-rate bond typically features a flexible coupon payment that is tied to a reference interest rate, such as the LIBOR or a government bond rate. Unlike fixed-rate bonds, which offer a fixed yield to maturity, floating-rate bonds have variable interest payments that adjust according to changes in market interest rates, thereby offering protection against interest rate risk for investors. Among the options provided, a floating-rate bond frequently has a flexible deferred call period, allowing the issuer the option to redeem the bond before its maturity date after a certain time period has passed. This feature is designed to give the issuer the flexibility to refinance the debt if market conditions become favorable. Government guarantees are not typical for most bonds unless explicitly stated, fixed-dollar obligations refer to the principal amount which doesn't fluctuate with market rates, and put provisions grant the bondholder the right to sell the bond back to the issuer, which may or may not be included in a floating-rate bond.