If a bond is paying interest semi-annually, then:
A) interest is paid once a year
B) interest is paid every six moths
C) interest is paid every three months
D) none of the above

Question

Quizplus · Accepted Answer

If a bond is paying interest semi-annually, it means that the interest is paid every six months. Therefore, option B is the correct answer. Option A, where interest is paid once a year, would correspond to an annual interest payment. Option C, where interest is paid every three months, would correspond to a quarterly interest payment. None of these options match the semi-annual interest payment described in the question.

If a Bond Is Paying Interest Semi-Annually, Then