Q537
Falling interest rate leads change to bondholder income which is
A.
reduction in income
AnswerB.
increment in income
C.
matured income
D.
frequent income
Answer: Option A
Solution
Answer: Option A
Solution:
Falling interest rate leads change to bondholder income which is reduction in income. An income bond is a type of debt security in which only the face value of the bond is promised to be paid to the investor, with any coupon payments paid only if the issuing company has enough earnings to pay for the coupon payment.