Q639
Type of bonds that pay coupon interest are classified as
A.
forward bond
B.
payment bonds
C.
coupon bond
AnswerD.
interest bonds
Answer: Option C
Solution
Answer: Option C
Solution:
Type of bonds that pay coupon interest are classified as coupon bond. A coupon bond is a type of bond. The bond issuer borrows capital from the bondholder and makes fixed payments to them at a fixed (or variable) interest rate for a specified period. that includes attached coupons and pays periodic (typically annual or semi-annual) interest payments during its lifetime and its par value.