A bond issued with detachable coupons that the bondholder must present to a paying agent or the issuer in order to receive interest payments is called a __________ bond.

Question

Quizplus · Accepted Answer

A registered coupon bond allows the issuer to maintain a record of who owns the bond and is entitled to receive interest payments when they become due. The detachable coupons serve as evidence of ownership and are presented for payment when interest is due. The other answer choices do not accurately describe a bond issued with detachable coupons.

A Bond Issued with Detachable Coupons That the Bondholder Must