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Type of bonds that pay coupon interest are classified as

A. forward bond

B. payment bonds

C. coupon bond

D. interest bonds

Answer: Option C

Solution(By Examveda Team)

Type of bonds that pay coupon interest are classified as coupon bond. A coupon bond is a type of bond. The bond issuer borrows capital from the bondholder and makes fixed payments to them at a fixed (or variable) interest rate for a specified period. that includes attached coupons and pays periodic (typically annual or semi-annual) interest payments during its lifetime and its par value.

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