Which of the following is true about bonds?

Question

Quizplus · Accepted Answer

Bonds have a fixed maturity, which means that they have a specific end date at which the bondholder will receive the face value of the bond. The coupon rate is a fixed interest rate that is paid annually or semi-annually. This means that the bondholder will receive a fixed amount of interest each year until the bond matures. Option A is incorrect because bonds are obligations from the corporation to the investor. Option B is incorrect because bond interest rates are not tied to the Consumer Price Index. Option D is incorrect because at maturity, the investor receives the face value of the bond, not the market price.

Which of the Following Is True About Bonds