Question

In: Finance

12. Terms like "Secured", "Coupon Rate", and "Sinking Fund" are most closely associated with a. Corporate...

12. Terms like "Secured", "Coupon Rate", and "Sinking Fund" are most closely associated with

a. Corporate Bonds

b. Preferred Stock

c. Common Stock

d. Money Markets

Solutions

Expert Solution

Coupon rate is the interest amount payable on the bond. Sinking fund is an arrangement to reduce credit risk by making the issuer set aside funds over time to retire the bonds issue.

So, the terms like Secured, coupon rate and sinking fund are most closely associated with the Corporate bonds.

Option 'a' is correct

Corporate bonds


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