The method used to pay interest depends on whether the bonds are:
A) Registered or coupon.
B) Mortgaged or unmortgaged.
C) Indentured or debentured.
D) Callable or redeemable.

Question

Quizplus · Accepted Answer

The method used to pay interest on bonds is dependent on whether the bond is registered or coupon. Registered bonds require interest payments to be made directly to the bondholder, while coupon bonds require the bondholder to physically present the coupon attached to the bond to receive interest payments. Mortgaged and unmortgaged, indentured and debentured, as well as callable and redeemable may impact the bond's features and characteristics but do not determine the method of interest payment.

The Method Used to Pay Interest Depends on Whether the Bonds