Issuers of coupon bonds
A)make a single payment of principal when the bonds matures, but multiple payments of interest over the life of the bond
B)make a single payment of interest and principal.
C)make multiple payments of principal, but a single payment of interest.
D)make a single payment of principal at the time the bond is issued and multiple payments of interest over the life of the bond.

Question

Quizplus · Accepted Answer

Coupon bonds are debt securities that pay a fixed interest rate over the life of the bond and make a single payment of principal when the bond matures. Therefore, issuers of coupon bonds make multiple payments of interest over the life of the bond, but only one payment of principal at the end of the bond's term.

Issuers of Coupon Bonds