Answer :

Bonds that require payment of the full principal at a single maturity date are known as term bonds is a true statement.

Term bonds have a single maturity date at which the whole principal must be repaid. The vast majority of bonds require full payment at one maturity date. A higher debt-to-equity ratio generally raises the likelihood of bankruptcy. Term bonds are fixed-term notes that companies sell to the general public or investors. The term of a bond is the amount of time between its issuance and maturity.

Longer-term bonds have two key benefits: diversification from equities, and reliable returns. Due to the low equity exposure in this type of portfolio, these investors do not require the benefit of diversification that longer bonds offer.

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