Bonds Are Referred to as Non-Amortizable Debt, Which Means

question 121

Multiple Choice

Bonds are referred to as non-amortizable debt, which means:

• A)interest is paid regularly during the term, usually semiannually whereas repayments of principal are annual.
• B)interest is paid regularly during the term, usually semiannually, and repayments of principal are semiannual.
• C)interest is paid regularly during the term, usually semiannually, whereas repayment of principal does not occur until the maturity date.
• D)interest and principal are paid regularly during the term, usually annually.

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Definitions:

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