Periodic interest payments over the term to maturity of bonds are called

Question

Quizplus · Accepted Answer

Coupon payments refer to the periodic interest payments made by the issuer of the bond to the bondholder over the term to maturity of the bond. Par values represent the face value or the amount that the bond will be worth at maturity. Present values refer to the current value of future cash flows, and discounting is the process of calculating present values. Therefore, the best answer is C, as coupon payments are specific to the payment of interest on bonds.

Periodic Interest Payments Over the Term to Maturity of Bonds