When investors buy bonds, they receive interest payments:
A)usually if the organization makes profits.
B)usually at a fixed rate for the life of the bond.
C)usually at a varied rate for the life of the bond.
D)accumulated at the expiry of the life of the bond.
E)usually at the end of every two years.

Question

Quizplus · Accepted Answer

Bonds typically pay interest at a fixed rate throughout their lifetime. This interest rate is determined at the time of issuance and does not change, providing investors with predictable income.

When Investors Buy Bonds, They Receive Interest Payments