The percentage of par value that is paid to the bond holder at regular intervals is known as
A) par rate.
B) par dividend.
C) interest rate.
D) annuity payment.

Question

Quizplus · Accepted Answer

The percentage of par value that is paid to the bond holder at regular intervals is known as interest rate. Par rate is a term used in the mortgage industry, par dividend is a term used in the stock market, and annuity payment is a periodic payment made to an individual under an annuity contract.

The Percentage of Par Value That Is Paid to the Bond