alleryStart learning →A hard bullet structure differs from a soft bullet in that it does what?
AIt pays much higher yields
BIt guarantees principal on the due date
CIt pays principal in instalments
DIt has no underlying collateral
Answer & Solution
Correct answer: B. It guarantees principal on the due date
A hard bullet guarantees payment on the scheduled maturity date; a soft bullet's final payment is not guaranteed on that date.
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