Coupon bonds are bonds that come with attached coupons and make periodic interest payments to bondholders. The coupons represent the interest payments to be made to the bondholder for a certain period of time, usually semi-annually or annually.

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Coupon Bonds Are

Question 40

Multiple Choice

Coupon bonds are:

A) bonds with coupons attached that represent multiple interest rates.
B) bonds with coupons attached that represent periodic interest payments.
C) bonds with coupons attached that represent multiple bond issuers.
D) bonds with coupons attached that represent discounted repayments.
E) bonds with coupons attached that represent multiple bond holders.

Correct Answer: