Type of bond which pays interest payment only when it earns is classified as

A income bond
B interest bond
C payment bond
D earning bond

Correct Answer: income bond

Type of bond which pays interest payment only when it earns is classified as income bond. An income bond is a type of debt security in which only the face value of the bond is promised to be paid to the investor, with any coupon payments paid only if the issuing company has enough earnings to pay for the coupon payment.
Bissoy MCQ
#Commerce #Financial Management

Related Questions

There are five statements given below: i. karim earns more than Rahim but less than Raihan ii. Tarique earns more than Farid iii. Rahim earns more than Rariq iv. Raihan and Rarique earn equal amounts v. Farid earns the least amount which of the above statements prove that Tarique earns more money than Rafiq?
A I, II and III
B II, III and IV
C III, IV and V
D I, III and IV
Kalam has invested a part of 10,000 Taka in an account that pays 6% simple interest rate each year and rest of the money in another account that pays 8% simple interest per year. If he has invested the money for 18 months and he has invested the money for 18 months and he earns a total of 1,020 Taka as interest, what is the difference in the amount of the interest earned on both the accounts?
A 40 Taka
B 60 Taka
C 100 Taka
D 120 Taka
The total salary of X, Y and Z is Tk.90,000. X earns twice of what Z earns, and Y earns 1.5 times of what Z earns. What is the salary of Z?
A Tk. 15,000
B Tk.20,000
C Tk.25,000
D Tk.30,000
A bond gets matured in 10 years . invested TK. 42,000 in this bond and received Tk. 105000 once the bond matured . If the bond was under simple interest . then what was the rate of interest per annum?
A 10%
B 12.5%
C 15%
D 7.5%
Bank X pays a simple interest of TaKa 80 on principal o taka 1,000 annually . Bank y pays a simple interest of TaKa 140 on a principal of Taka 1000 annually . What is the ratio of the interest rates of Bank x to Bank y ?
A 4:7
B 6:8
C 9:18
D 2:7
The sum of daily income of P, Q, R is Tk. 90. If Q earns taka 10 more than P and R earns double of what Q earns, then what is the average of daily income of P and Q?
A 40 Tk.
B 30 Tk.
C 20 Tk.
D 10 Tk.
The combined salary of X , Y and Z is Tk. 90,000. X earns twice of what z earns, and Y earns 1.5 times of what is the lowest salary of the three?
A 20,000
B 22,000
C 25,000
D 30,000
The some of daily income of P, Q and R is TK.90. If Q earns TK.10 more than P and R earns double of what Q earns, then what is the average of daily income of P and Q?
A 15
B 20
C 25
D 30
One-half of the employees of a company earns over Tk. 18,000 per month. One-third of the reminder earns between Tk. 15,000 and Tk. 18,000. What part of the staff earns below Tk. 15,000?
A one-sixth
B two-thirds
C 50%
D 10%
A buniessperson invest 2800 taka and earns 5% interest on some money and 4% interst on the rest of money. If the gets 128 taka as a profit at the end of the year, what is the amount of money on which he earns 5% interest?
A 1600
B 3200
C 3000
D 5600

Next steps