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Straight Fixed-Rate Bond Issues Have

Question 55

Multiple Choice

Straight fixed-rate bond issues have


A) a designated maturity date at which the principal of the bond issue is promised to be repaid. During the life of the bond, fixed coupon payments, which are a percentage of the face value, are paid as interest to the bondholders.
B) a designated maturity date at which the principal of the bond issue is promised to be repaid. During the life of the bond, coupon payments, which are a percentage of the face value, are computed according to a fixed formula.
C) a fixed payment, which amortizes the debt, like a house payment or car payment.
D) none of the above

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