When the Words in a Contract Have More Than One

question 35

True/False

When the words in a contract have more than one meaning,they are cut from the contract.

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Definitions:

Semiannual Coupon

Interest payments made to bond investors every six months as part of the bond's fixed-income return.

Bond Rating

An evaluation provided by a credit rating agency regarding the creditworthiness of a bond issuer, affecting the interest rates and investment appeal of its bonds.

Secured Debt

A debt that is backed by collateral, providing the lender with assurance that the loan can be recovered if defaulted.

Unsecured Debt

A type of debt that is not backed by collateral, making it riskier for lenders and often resulting in higher interest rates for borrowers.