A Bond Issue Is Broken Up So That Some Investors

question 63

Multiple Choice

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 _________.

• A) bundling
• B) credit enhancement
• C) securitization
• D) unbundling

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Definitions:

New York

A state in the United States known for its significant impact on national law and as a major legal center.

California

A state in the western United States, known for its diverse geography, vibrant economy, and significant cultural influence.

Maine

A state in the northeastern tip of the United States, known for its scenic landscapes and maritime history.

Disbarment

The process of removing a lawyer from the bar association, making them no longer eligible to practice law.