Which of the Following Bonds Pays Interest Based on an Inflation

question 120

Multiple Choice

Which of the following bonds pays interest based on an inflation index?

• A)Floating-rate bonds
• B)Income bonds
• C)Treasury bills
• D)Purchasing power bonds
• E)Zero coupon bonds

---

Definitions:

Product Samples

Free or low-cost portions of a product distributed to consumers to try before making a purchase decision, serving as a promotional tool.

Premiums

Items offered for free or at a reduced price as an incentive to purchase a product or to reward loyal customers.

Sales Promotion Expenditures

The financial investment allocated towards marketing strategies and campaigns designed to increase immediate consumer demand and stimulate sales of a product or service.

Consumer-Oriented Sales Promotions

Marketing strategies aimed at inducing consumers directly to purchase products through methods such as coupons, discounts, and contests.