A bond that is characterized by a fixed periodic payment schedule that reduces the bonds outstanding principal
Question:
A bond that is characterized by a fixed periodic payment schedule that reduces the bond’s outstanding principal amount to zero by the maturity date is best described as a:
A. Bullet bond.
B. Plain vanilla bond.
C. Fully amortized bond.
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The answer is C Fully amortized bond A fully amortized bond is a bond that is re...View the full answer
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