Which of the following statement/s is/are correct of floating Rate Notes?
1. These are debt instruments on which variable interest rate is payable.
2. The rate of interest is linked to a benchmark rate of interest and changes with the change in such bench mark rate of interest.

A. 1 is correct

B. 2 is correct

C. 1 and 2 is correct

D. Neither 1 nor 2 is correct

Answer: Option C