A Bond Issued with Detachable Coupons That the Bondholder Must

question 100

Multiple Choice

A bond issued with detachable coupons that the bondholder must present to a paying agent or the issuer in order to receive interest payments is called a __________ bond.

• A)registered coupon
• B)certified
• C)revenue
• D)zero-coupon
• E)general obligation

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Definitions:

Endorsement

The act of signing the back of a financial document or negotiable instrument, thereby transferring rights or authorizing actions related to the document.

Delegatee

A third party who is not part of the original contract but to whom duties to perform are transferred by one of the contracting parties (a delegator).

Order Instrument

An instrument payable to a specific, named payee.

Instrument Payable

A written document that promises the payment of a definite amount of money either on demand or at a future date.