Which of the following are bonds whose coupon rate is tied to a price index?
A)pay-in-kind bonds
B)indexed bonds
C)reverse floaters
D)asset-backed bonds

Question

Quizplus · Accepted Answer

Indexed bonds are bonds whose coupon rate is tied to a price index, such as the Consumer Price Index (CPI). The coupon payments on these bonds adjust based on changes in the index, providing a measure of inflation protection to investors. Pay-in-kind bonds give their investors the option of receiving additional bonds or shares of stock instead of cash coupon payments, while reverse floaters pay a fluctuating coupon rate based on changes in an interest rate index. Asset-backed bonds are backed by a pool of underlying assets, such as mortgages or credit card receivables.

Which of the Following Are Bonds Whose Coupon Rate Is