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Which of the following statements is true? A. A bond issue that requires the repayment of the entire principal amount at maturity is said to
Which of the following statements is true?
A. | A bond issue that requires the repayment of the entire principal amount at maturity is said to have a bullet maturity.
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B. | When a bond issue is repaid in multiple installments, the method of repayment is called a coupon payment.
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C. | When the final repayment of principal is smaller than its par value then it is called a balloon payment. | |
D. | When the required return is greater than the coupon rate, the fair price equals the par value |
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