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There are many different types of bonds, some of which are quite new. Which of the following statements are true with respect to these different
There are many different types of bonds, some of which are quite new. Which of the following statements are true with respect to these different types of bonds? Select one: a. A CAT bond is usually issued by insurance companies to move the risk of large earthquakes and hurricanes off of their Balance Sheets and into the capital markets b. A "death bond" or life settlement account gives an aging baby boomer a chance to monetize (or sell) an existing life insurance policy for immediate cash proceeds c. A convertible bond gives the investor both upside potential (from the conversion option) and downside protection (from the bond value) d. A real return bond provides protection against inflation by grossing up the face value prior to the payment of each coupon. At maturity, the investor receives the grossed up face value plus the final coupon. e. All of the above are true statements
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