Unlike bonds that carry a fixed coupon rate, floating-rate bonds link payouts at maturity to prevailing market interest rates. The coupon of the typical 15-year floating-rate government bond is recalculated every six months in accordance with the auction results for the benchmark 10-year Japanese government bond. Floating-rate bonds are designed to prevent investors from receiving below-market interest rates as will happen to fixed-rate bonds when market rates increase after they are purchased. Given the lack of attractive investment alternatives, investors are snapping up 10-year government bonds. A record number of bids were made on Jan. 9, pushing down the rates on some 15-year floating-rate bonds to zero. The Ministry of Finance has set a floor for bonds targeted at individual investors to avoid falling into a situation in which they offer no return, thereby guaranteeing at least some interest income for investors.