A bond issue is broken up so that some investors will receive only interest payments while others will receive only principal payments, which is an example of ________.
A
bundling
B
un-bundling
C
financial engineering
D
credit enhancement
E
B & C
Correct Answer: B & C
A bond issue is broken up so that some investors will receive only interest payments while others will receive only principal payments, which is an example of un-bundling and financial engineering.