单选题 Sometimes floating rate issues have caps and/or floors, which limit the maximum or minimum coupon rate that the issue will pay. Which of the following statements is TRUE with regard to floating rate issues that have caps and floors?

A、 A floor is a disadvantage to both the issuer and the bondholder while a cap is an advantage to both the issuer and the bondholder.
B、 A floor is an advantage to both the issuer and the bondholder while a cap is a disadvantage to both the issuer and the bondholder.
C、 A cap is a disadvantage to the bondholder while a floor is a disadvantage to the issuer.

【正确答案】 C

【答案解析】A cap limits the upside potential of the coupon rate paid on the floating rate bond and is therefore a disadvantage to the bondholder. A floor limits the downside potential of the coupon rate and is therefore a disadvantage to the bond issuer.