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Financing a Debt Through the Direct-Issue of Currency Is Called

question 29

Multiple Choice

Financing a debt through the direct-issue of currency is called ________.


Definitions:

Callable Bond

A bond that can be redeemed by the issuer prior to its maturity date, usually at a premium to its face value.

Straight Bond

A fixed-income security that pays a fixed interest rate until maturity, at which point the principal is repaid; does not have any special features like convertibility or callability.

Coupon Rate

The annual interest earnings of a bond, represented as a percentage of its stated value.

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