Q410
Type of instrument whoever holds it gets interest and principal amount is classified as
A.
term instrument
B.
interim instrument
C.
primary instrument
D.
bearer instrument
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
Type of instrument whoever holds it gets interest and principal amount is classified as bearer instrument. A bearer instrument, or bearer bond, is a type of fixed-income security in which no ownership information is recorded and the security is issued in physical form to the purchaser. The holder is presumed to be the owner, and whoever is in possession of the physical bond is entitled to the coupon payments.