Variable Rate Reset Roll

Q: I have a variable rate bond with the Reset Frequency set to Weekly and the Reset Day set to Roll.  This should maintain a constant 7 day reset, but the rate is not changing on a daily basis.  What could be the problem?

A: In order for a bond's rate to be reset, a position must exist for that bond.  If there is no position, the bond is not reset.

Last updated: 04/28/05