Namely, bond coupon payments are determined
by market interest rates, the type of issuing
entity (
government bonds pay lower coupons than corporate bonds because of lower
default risk), the creditworthiness of the issuing
entity (AAA companies pay lower coupons than CCC companies), and the maturity of the bond, which we will talk about next.
Investment - grade bonds are issued
by entities with a lower risk of
defaulting on debts, such as the U.S.
government and corporations on sound financial footing.
Other more general MAPs Rule requirements that also are important for reverse mortgage advertising include not making a material misrepresentation regarding: (i) the potential for
default under the mortgage, including misrepresentations concerning the circumstances under which the consumer could
default for nonpayment of taxes, insurance, or maintenance, or for failure to meet other obligations; (ii) the effectiveness of the mortgage in helping the consumer resolve difficulties in paying debts, including misrepresentations that any mortgage can reduce, eliminate, or restructure debt or result in a waiver or forgiveness, in whole or in part, of a consumer's existing obligations with any person, or (iii) that the mortgage is or relates to a
government benefit, or is endorsed, sponsored
by, or affiliated with any
government or other program, including through the use of formats, symbols, or logos that resemble those of such
entity, organization, or program.