Which of the following are true of coupon bonds?
A) The owner of a coupon bond receives a fixed interest payment every year until the maturity date, when the face or par value is repaid.
B) U.S. Treasury bonds and notes are examples of coupon bonds.
C) Corporate bonds are examples of coupon bonds.
D) All of the above.
E) Only A and B of the above.

Question

Quizplus · Accepted Answer

All of the statements are true. Coupon bonds pay a fixed interest payment every year until the maturity date, when the face value is repaid. Both U.S. Treasury bonds and notes and corporate bonds are examples of coupon bonds.

Which of the Following Are True of Coupon Bonds