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Which Three of the Following Accurately Apply to Bonds

Question 34

Multiple Choice

Which three of the following accurately apply to bonds?


A) The company (usually) promises to pay the bond owners a series of interest payments, known as coupons, until the bond matures.
B) The bank makes a fixed charge on the asset, generally 1 per cent above base rate.
C) A bond is a long- term contract in which the bondholders lend money to a company.
D) At maturity the bondholder receives a specified principal sum called the par (face or nominal) value of the bond.

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