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Examveda

A bond issue is broken up so that some investors will receive only interest payments while others will receive only principal payments, which is an example of ________.

A. bundling

B. un-bundling

C. financial engineering

D. credit enhancement

E. B & C

Answer: Option E

Solution(By Examveda Team)

A bond issue is broken up so that some investors will receive only interest payments while others will receive only principal payments, which is an example of un-bundling and financial engineering.

This Question Belongs to Commerce >> Financial Management

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