Question
21. A plain-vanilla bond typically makes periodic, fixed coupon payments and a lump-sum payment of principal at maturity?__________ 22) A bullet bond is where the
21. A plain-vanilla bond typically makes periodic, fixed coupon payments and a lump-sum payment of principal at maturity?__________
22) A bullet bond is where the entire payment of principal occurs at maturity?__________
23) A partially amortized bond has a fixed payment schedule that reduces the bonds outstanding principal amount to zero at maturity?__________
24) If you thought interest rates were going to increase it would be best to purchase a fixedrate bond?__________
25) Bonds with step-up coupons incentive the issuer to call the bond before the coupon rate increases to avoid paying a higher interest expense?_
26) Zero coupon bonds pay a fixed coupon annually?__________
27) If you're worried about inflation, you would purchase TIPS?__________
28) When an issuer sells callable bonds with an American-style call, they have the right to call the bond only once on the call date?__________
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