A basic bond that has a face value of $1,000 and pays regular semiannual coupon payments is referred to as which one of the following?

Question

Quizplus · Accepted Answer

A straight bond has a face value of $1,000 and pays regular semiannual coupon payments, which makes it a basic and traditional type of bond. A pure discount bond does not pay interest payments but instead is sold at a discount to its face value, a premium bond is sold at a price above its face value, an inflation bond has its principal adjusted based on inflation, and a conversion bond can be converted into stock at the option of the bondholder.

A Basic Bond That Has a Face Value of $1,000