Discuss the Methods by Which Bonds May Be Retired

question 132

Essay

Discuss the methods by which bonds may be retired. Which method offers the greatest security for investors? Which method does the issuing firm prefer?

---

Definitions:

Habituation

Becoming used to a stimulus and therefore paying less attention to it.

Babinski reflex

A reflex action of the foot in which the big toe extends upwards and the other toes fan out when the sole of the foot is firmly stroked, common in infants.

Regression

A return to behavior characteristic of earlier stages of development.

Moro reflex

An involuntary reflex found in infants, often referred to as the startle reflex, where the baby flings their arms out and then retracts them quickly in response to a sensation of falling or a sudden noise.