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Principles of Economics Study Set 4
Quiz 20: Money, Prices, and the Financial System
Regular Interest Payments Made to Bondholders Are Called ______ Payments. A)diversification B)reserve C)coupon D)dividend
Question 15
Multiple Choice
Regular interest payments made to bondholders are called ______ payments. A)diversification B)reserve C)coupon D)dividend
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Related questions
Q 16
If the principal amount of a bond is $10,000,000,the coupon rate is 7%,and the inflation rate is 4%,then the annual coupon payment made to the holder of the bond is: A)$70,000. B)$300,000. C)$400,000. D)$700,000.
Q 17
The market value of a particular bond at any given point in time is called the bond's: A)coupon rate. B)principal. C)term. D)price.
Q 18
The coupon rate on newly issued bonds is usually higher for bonds with ______ terms and ______ risk that the borrower will go bankrupt. A)shorter;greater B)shorter;smaller C)longer;greater D)longer;smaller
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