What need were strips intended to fill

Reference no: EM131305517

1. Why do consumers usually prefer fixed-payment loans to simple loans when buying cars and houses?

2. What is a STRIP? Why were STRIPS created? What need were STRIPS intended to fill?

3. When corporations borrow money for a long period, why do they prefer to borrow in the form of coupon bonds rather than in the form of fixed-payment loans?

Reference no: EM131305517

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