Bonds that have interest coupons attached to their certificates,which the bondholders detach during each interest period and present to a bank for collection,are called:
A)Coupon bonds.
B)Callable bonds.
C)Serial bonds.
D)Convertible bonds.
E)Clip and Carry bonds.

Question

Quizplus · Accepted Answer

Coupon bonds are named after the interest coupons attached to them that bondholders detach and collect during each interest payment period. This is a traditional way of paying interest to bondholders, and the coupons can be presented to a bank for payment. Callable bonds can be redeemed by the issuer prior to maturity, serial bonds mature at different times in the future, convertible bonds can be converted into shares of stock, and clip and carry bonds are not a recognized type of bond.

Bonds That Have Interest Coupons Attached to Their Certificates,which the Bondholders