Of the Following, Which Is NOT a Standard Bond Feature

question 116

Multiple Choice

Of the following, which is NOT a standard bond feature?

• A)Floating-interest rate coupons.
• B)Half-yearly coupons.
• C)Redeemed by the payment of face value.
• D)Face value payable at the maturity date.
• E)All of these are standard bond features.

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Definitions:

Interest Rate

The fraction of a loan incurred as interest cost to the borrower, often expressed annually as a percentage of the total loan amount still due.

Interest Rate

The cost of borrowing money or the reward for saving, usually expressed as a percentage of the principal amount per annum.

Years From Now

This term projects a future timeline or point in time from the present moment.

Interest Rate

The amount charged on top of the principal by lenders to borrowers, usually expressed as an annual percentage of the loan.