单选题 Which of the following investors is least susceptible to inflation risk? A. A financial institution with assets concentrated in fixed-rate mortgages. B. An individual with a 5 year certificate of deposit at a local financial institution. C. The holder of a 15-year bond with a coupon formula equal to the U. S. prime rate plus 3.25%.

【正确答案】 C

【答案解析】A 15-year bond with a coupon formula equal to the U. S. prime rate plus 3.25% is an example of a floating rate bond. The holder of an adjustable rate asset is impacted less by inflation than the holder of a fixed-rate asset because the increased cash flow (from the higher coupon payments when the base rate increases) at least partially offsets the decreased purchasing power caused by inflation.