Coupon payment of bond which is fixed at time of issuance____________?
Correct answer: A. Remains same
- A. Remains same
- B. Becomes stable
- C. Becomes change
- D. Becomes low
Explanation
A fixed-rate bond promises the same coupon payment at each scheduled payment date until maturity, regardless of later market-rate changes. This differs from a floating-rate bond, whose payment can reset.
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Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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