If a firm is allowed to miss a payment on a bond in a year in which it reports an operating loss, the bond is likely a(n) ______________ bond.

Name: If a firm is allowed to miss a payment on a bond in a year in which it reports an operating loss, the bond is likely a(n) ______________ bond.
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Income bonds allow firms to skip interest payments in years when they report operating losses, making them distinct in their flexibility for the issuer in terms of payment obligations.

If a Firm Is Allowed to Miss a Payment on a Bond