Q331
Type of bonds in which whole issues matures on a single date is considered as
A.
term bonds
AnswerB.
under bonds
C.
collateral bonds
D.
trustworthy bonds
Answer: Option A
Solution
Answer: Option A
Solution:
Type of bonds in which whole issues matures on a single date is considered as term bonds. A term bond refers to bonds from the same issue with the same maturity dates. In effect, term bonds mature on a specific date in the future and the bond face value must be repaid to the bondholder on that date. The term of the bond is the amount of time between bond issuance and bond maturity.