The issuer of a/an ________ bond may choose to pay interest either in cash or in additional bonds.

Question

Quizplus · Accepted Answer

The term "pay in kind" refers to when the issuer of a bond has the option to pay interest in the form of additional bonds instead of cash. Therefore, the correct answer is D - pay in kind bonds. Options A, B, and C do not have the same feature of allowing interest payments in the form of additional bonds.

The Issuer of A/an ________ Bond May Choose to Pay