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QUESTION 39 Assuming an equal amount of principal, which bond structure requires the largest repayment at...

QUESTION 39

  1. Assuming an equal amount of principal, which bond structure requires the largest repayment at maturity?

a.

Quarterly amortizing bond

b.

Annual amortizing bond

c.

Bullet bond

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Answer #1

Answer : c) Bullet bond

Bullet bond requires the largest repayment at maturity than others such as quarterly or annual amortising bond.

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