A balloon maturity of municipal securities is most accurately described as:

A balloon maturity of municipal securities is most accurately described as:




A) an often later maturity within a serial issue of bonds which contains a disproportionately large percentage of the principal amount of the original issue.

B) bonds comprising all of a particular issue which come due in a single maturity.

C) an obligation granting the bondholder the right to require the issuer to purchase the bonds at par at a certain time prior to maturity.

D) a serial issue of bonds on which the interest rate periodically changes over the life of the issue for all bonds remaining outstanding.



Answer: A) an often later maturity within a serial issue of bonds which contains a disproportionately large percentage of the principal amount of the original issue.


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