1. Bonds are fixed income securities that investors buy for the sake of coupon payments. Their appeal comes from a predictable and fixed stream of coupon payments over the maturity of the bond.

Group of answer choices

True

False

2. To avoid default, companies and countries must pay their debt obligations (bonds) in full and on time and in FULL compliance with the bond covenants. Partial payments or asking for a stay (time to comply) are considered a "default."

Group of answer choices

True

False