The bonds issued with the right to reinvest the income into the bonds with the same terms and…
Bunny bonds allow the holder to reinvest interest income in additional bonds on the same terms as the original bond. The reinvestment right distinguishes them from bonds…
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The bonds issued with the right to reinvest the income into the bonds with the same terms and conditions of the host bond is called__________ bonds.
Answer and explanation
Correct answer D
Bunny bonds allow the holder to reinvest interest income in additional bonds on the same terms as the original bond. The reinvestment right distinguishes them from bonds classified by credit quality or placement method.
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Kerala SET (LBS Centre)