________ bonds are characterized by interest payments that are required only when earnings are available from which to make such payment.

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Income bonds, also called adjustment bonds or profit-sharing bonds, have interest payments that depend on the company's earnings. These bonds are typically issued by companies that have uncertain or inconsistent financial performance. Investors receive interest payments only if the company makes a profit or generates earnings, which makes income bonds riskier than other types of bonds. However, income bonds may offer higher yields to compensate for the increased risk.

________ Bonds Are Characterized by Interest Payments That Are Required