Multiple Choice
Which of the following scenarios are examples of credit enhancements?
A) A manufacturing company makes monthly payments into a sinking fund which it will use to repay principal to bondholders when the bonds mature.
B) A trucking company obtains a lower interest rate on a bank loan for trucks by pledging the vehicles as collateral.
C) Mortgages on residential properties must be insured by the Canada Mortgage and Housing Corporation if the down payment is less than 20%.
D) All of the above.
Correct Answer:
Verified
Correct Answer:
Verified
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