CFA Practice Question

There are 490 practice questions for this study session.

CFA Practice Question

Relative to a bullet bond, the coupon payments of an otherwise similar fully amortized bond are ______.
A. lower or equal
B. equal
C. higher or equal
Explanation: The coupon payments of an otherwise similar fully amortized bond are lower or equal to those of a bullet bond because the principal is being amortized, causing coupon payments (coupon rate x outstanding balance of principal) to drop.

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Frontier17 good one
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