A bond that is characterized by a fixed periodic payment schedule that reduces the bonds outstanding principal

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A bond that is characterized by a fixed periodic payment schedule that reduces the bond’s outstanding principal amount to zero by the maturity date is best described as a:

A. Bullet bond.

B. Plain vanilla bond.

C. Fully amortized bond.

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Fixed Income Analysis

ISBN: 9781119850540

5th Edition

Authors: Barbara S. Petitt

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Question Posted: Nov 05, 2023 12:17 AM

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A bond that is characterized by a fixed periodic payment schedule that reduces the bonds outstanding principal

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The answer is C Fully amortized bond A fully amortized bond is a bond that is re...View the full answer

Fixed Income Analysis

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