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
Answer: Option A
Solution (By Examveda Team)
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.This Question Belongs to Management >> International Finance And Treasury
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