A credit market instrument that requires the borrower to make the same payment every period until the maturity date is known as a
A)simple loan.
B)fixed-payment loan.
C)coupon bond.
D)discount bond.

Question

Quizplus · Accepted Answer

A fixed-payment loan requires the borrower to make equal payments every period until the loan maturity date, while a simple loan requires a lump-sum payment at maturity. Coupon bonds and discount bonds are types of debt securities and not credit market instruments requiring payments from borrowers.

A Credit Market Instrument That Requires the Borrower to Make