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Commerce · Q546

Financial Management

Graduate and Post Graduate · Commerce · question 546

Q546

Payment divided by par value is classified as

A.
divisible payment
B.
coupon payment
Answer
C.
par payment
D.
per period payment

Answer: Option B

Solution

Answer: Option B
Solution:
Payment divided by par value is classified as coupon payment. A coupon payment on a bond is the annual interest payment that the bondholder receives from the bond's issue date until it matures.