Question
Straight fixed-rate bond issues have a designated maturity date at which the principal of the bond issue is promised to be repaid. During the life
Straight fixed-rate bond issues have
| a designated maturity date at which the principal of the bond issue is promised to be repaid. During the life of the bond, coupon payments, which are a percentage of the face value, are computed according to a fixed formula. | ||
| a designated maturity date at which the principal of the bond issue is promised to be repaid. During the life of the bond, fixed coupon payments, which are a percentage of the face value, are paid as interest to the bondholders. | ||
| a fixed payment, which amortizes the debt, like a house payment or car payment. | ||
| none of the options |
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