Question: What is an interest - only loan? Multiple choice question. It's a loan in which the borrower pays both interest and principal periodically. It's a

What is an interest-only loan?
Multiple choice question.
It's a loan in which the borrower pays both interest and principal periodically.
It's a loan in which the borrower never repays the principal.
It's a loan in which the borrower pays interest periodically and repays the principal when the bond matures.
It's a loan in which the borrower pays all of the interest owed when the bond matures.

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