Which one of the following statements about vanilla bonds is NOT true?
A) They have fixed coupon payments.
B) The face value, or par value, for most corporate bonds is $1,000.
C) Coupon payments are usually made quarterly.
D) The bond's coupon rate is calculated as the annual coupon payment divided by the bond's face value.

Question

Quizplus · Accepted Answer

While coupon payments are usually made semi-annually or quarterly for some bonds, it is not true for all vanilla bonds. Some bonds may have annual or irregular coupon payments.

Which One of the Following Statements About Vanilla Bonds Is