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Question 15 of 22
The Financial Sector - End of Chapter Problem

Your parents are thinking about purchasing bonds with a 25-year term, but they are a little worried that they might need the money before the 25-year term is up. How would they go about accessing the money if they needed it before the end of the term?



Answer :

GinnyAnswer

Final answer:

To access funds from bonds before the term ends, consider selling on the secondary market, using options, or utilizing bond funds for liquidity.


Explanation:

If your parents purchase bonds with a 25-year term but need the money before the term ends, they can access the funds through:

  1. Selling the bonds on the secondary market to other investors
  2. Leveraging options like put options to sell the bonds back at a predetermined price
  3. Using bond funds that offer liquidity to redeem the investment before maturity

Learn more about Accessing funds from bonds here:

https://brainly.com/question/34093737


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