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A legal document that details the rights of bondholders and the issuer is called If the legal document just described includes a sinking fund provision,
A legal document that details the rights of bondholders and the issuer is called If the legal document just described includes a sinking fund provision, is the bond considered to have more or less default risk, all else being equal? O More default risk Q Less default risk You can distinguish the various types of bonds by their terms of contract, pledge of collateral, and so on. Identify the type of bond based on each description given in the table that follows: Description Type of Bond These bonds are not backed by any physical collateral. TheyD are backed by the reputation and creditworthiness of the issuing company. These bonds are considered the riskiest of all corporate bonds and thus offer the highest interest rates These bonds are collateralized securities with first claims in the event of bankruptcy Ambac Financial Group, MBIA Inc., Federal Guaranty Insurance Company, Assured Guaranty, and CIFG are some of the municipal bond insurance companies in the United States Municipal bond insurance companies guarantee to pay defaults if the issuer
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