Payment of interest required only when earnings are made available from which to make apayment is characteristic of

Name: Payment of interest required only when earnings are made available from which to make apayment is characteristic of
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Question

Quizplus · Accepted Answer

This is a characteristic of an income bond, which pays interest only if the issuer has earnings available to make the payment. This is different from a regular bond, which typically has a fixed interest rate and pays interest regardless of earnings.

Payment of Interest Required Only When Earnings Are Made Available