A bond that makes a regular interest payment until maturity, at which time the face value is repaid is referred to as a
A)coupon bond.
B)fixed-payment security.
C)discount bond.
D)perpetuity.

Question

Quizplus · Accepted Answer

A coupon bond is a type of bond that pays regular interest payments until the maturity date, at which time the face value is repaid. This is the most common type of bond issued by corporations and governments. A fixed-payment security refers to a security where the payment is fixed and does not vary, but it does not necessarily refer specifically to bonds. A discount bond is a bond that is sold for less than its face value, and the investor doesn't receive interest payments but instead earns a profit from the difference between the purchase price and the face value at maturity. A perpetuity is a type of security that pays a fixed sum of money indefinitely, without a maturity date.

A Bond That Makes a Regular Interest Payment Until Maturity