A bond issue is broken up so that some investors will receive interest payments while others will receive principal payments.This is an example of _________.

Question

Quizplus · Accepted Answer

Breaking up a bond issue so that some investors receive interest payments and others receive principal payments is an example of unbundling. Bundling refers to combining multiple assets into one security, credit enhancement refers to measures taken to reduce default risk, and securitization involves transforming assets into securities that can be traded on a secondary market.

A Bond Issue Is Broken Up So That Some Investors