One of the questions I was doing stated that Mr X would like to hedge the interest rate risk of one of his bonds, a floating-rate bond.
Does it imply that Mr X is the issuer of the bond and hence makes coupon payments at floating rate or does it mean that Mr X has invested in a floating rate bond wherein he receives coupon payments at floating rate?
There has to be more context than that because if you are long the bond your interest rate risk is if the coupon/market rates decline yet if you are the issuer then your risk is if rates rise. The complete opposite effect. The answer choices may give you clues as well - its just hard to say without reading the whole vignette/questions.