The issuer of bond pays interest at fixe

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Home Questions 22WG7S7SXX

Target Exam

CUET

Subject

-- Applied Mathematics - Section B2

Chapter

Index Numbers and Time Based Data

Question:

The issuer of bond pays interest at fixed interval at fixed rate of interest to investor is called :

Options:

Face value

Present value

Coupon rate

Coupon payment

Correct Answer:

Coupon payment

Explanation:

The correct answer is Option (4) → Coupon payment

A coupon payment is the periodic interest payment made to bondholders during the lifetime of bond.