A _____ is a combination of an annuity that consists of coupon payments and a terminal payment of the par value.
A)share
B)bond
C)perpetuity
D)debenture

Question

Quizplus · Accepted Answer

This describes a typical bond, which pays out periodic coupon payments (like an annuity) and a terminal payment of the par value at maturity. Choice A (share) refers to ownership in a company, choice C (perpetuity) refers to a security that pays out a fixed amount of money indefinitely, and choice D (debenture) is a type of bond that is not backed by specific collateral.

A _____ Is a Combination of an Annuity That Consists