The responsibility for receiving the proper amount of interest falls on the bondholder most heavily in the case of
A)term bonds.
B)serial bonds.
C)coupon bonds.
D)registered bonds.

Question

Quizplus · Accepted Answer

Coupon bonds pay interest at regular intervals, and the bondholder is responsible for ensuring they receive the proper amount of interest. Term bonds have a set maturity date but do not pay interest until maturity, so interest is not a concern for bondholders until the bond reaches maturity. Serial bonds also pay interest at regular intervals, but the issuer is obligated to make the payments until the bond reaches maturity. Registered bonds have the interest payments automatically deposited into the investor's account, so there is no responsibility on the part of the bondholder to receive the proper amount of interest.

The Responsibility for Receiving the Proper Amount of Interest Falls