When bonds are called and redeem, they must be ceased to
A
earn interest
B
pay interest
C
earn floating rate
D
earn funding rate
Correct Answer: earn interest
When bonds are called and redeem, they must be ceased to earn interest. Investors who purchase a company's bonds receive interest on the bond and are promised a return on their investment at a future date. The future date is when a bond matures. Usually, the bond issuer repays the bond principal to the investor on the maturity date.