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Bonds Are Referred to as Non-Amortizable Debt, Which Means

Question 7

Multiple Choice

Bonds are referred to as non-amortizable debt, which means:


A) interest is paid regularly during the term, usually semiannually whereas repayments of principal are annual.
B) interest is paid regularly during the term, usually semiannually, and repayments of principal are semiannual.
C) interest is paid regularly during the term, usually semiannually, whereas repayment of principal does not occur until the maturity date.
D) interest and principal are paid regularly during the term, usually annually.

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