CFA Practice Question

There are 490 practice questions for this study session.

CFA Practice Question

The structure that requires the smallest repayment of principal at maturity is that of a ______.
A. bullet bond
B. fully amortized bond
C. partially amortized bond
Explanation: The repayment of principal occurs over time for fully amortized bonds. By the maturity date the fixed periodic payment schedule will reduce a fully amortized bond's outstanding principal amount to zero.

User Contributed Comments 1

User Comment
marta4100 they got me, got to read more carefully
You need to log in first to add your comment.