The type of bonds that pay coupon interest are classified as ____________?
Correct answer: C. coupon bond
- A. forward bond
- B. payment bonds
- C. coupon bond
- D. interest bonds
Explanation
A coupon bond makes periodic interest payments to its holder, unlike a zero-coupon bond, which pays no coupons and is redeemed at maturity. The term “coupon bond” directly identifies this feature.
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About Business Finance
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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