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If a ﬁRm Is Allowed to Miss a Payment on a Bond

Question 188

Multiple Choice

If a ﬁrm is allowed to miss a payment on a bond in a year in which it reports an operating loss, the bond is likely a(n) ______________ bond.

A) Putable.
B) Zero coupon.
C) Income.
D) Floating rate.
E) Callable.

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