- CFA Exams
- CFA Level I Exam
- Topic 6. Fixed Income
- Learning Module 42. Fixed-Income Securities: Defining Elements
- Subject 4. Structure of a Bond's Cash Flows
CFA Practice Question
With bonds that are said to have a bullet maturity ______
A. the issuer is not required to make any principal repayments prior to the maturity date.
B. the issuer is not required to make any principal repayments after the maturity date.
C. the issuer is required to make principal repayments prior to the maturity date.
Explanation: Bonds that are said to have a bullet maturity are those where the issuer is not required to make any principal repayments prior to the maturity date.
User Contributed Comments 4
| User | Comment |
|---|---|
| steved333 | bullet=balloon |
| jackwez | good way to remember |
| birdperson | bullet = zero coupon |
| cframptom | Bullet bond does not have to be a zero. |