Task: Class Definition Understanding (ontology: Business_Finance/Financial_Industry_Business_Ontology)

Which of the following definitions best describes 'regular floater tranche'?

A. Interest Only tranche, meaning that this tranche will only pay interest.
B. Regular non-Sticky Jump Z tranches maintain their changed status only while the trigger event is in effect, and revert to their old payment status once the trigger event has passed.
C. A floater tranche is a tranche that is keyed to an index and a spread. The spread is added to the index.
D. Principal Only tranche. This tranche will only pay principal.

Answer: A floater tranche is a tranche that is keyed to an index and a spread. The spread is added to the index.