When all exponent bits are 1 with all mantissa bits set to 0, it represents infinity, either positive or negative depending on the sign bit. This scenario is specifically designed to handle overflow situations where a calculation results in a value that exceeds the representable range of the floating-point format.
When a calculation or operation in a program results in a value that exceeds the maximum representable value in the floating-point format, the result is typically set to infinity to indicate that the computation has gone beyond the numerical limits of the format. This helps in handling exceptional cases and preventing numerical errors or inconsistencies in computations.