Q652
Investors of coupon bond will receive cash flow very soon if
A.
maturity is lower
B.
maturity is higher
C.
interest payment is higher
AnswerD.
interest payment is lower
Answer: Option C
Solution
Answer: Option C
Solution:
Investors of coupon bond will receive cash flow very soon if interest payment is higher. A coupon bond, also referred to as a bearer bond or bond coupon, is a debt obligation with coupons attached that represent semiannual interest payments. With coupon bonds, there are no records of the purchaser kept by the issuer; the purchaser's name is also not printed on any kind of certificate.