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Type of bond which pays interest payment only when it earns...

This question belongs to Commerce Financial Management
Financial Management
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Type of bond which pays interest payment only when it earns is classified as

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Correct Answer: Option A
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.
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