Question 14
Business FinanceA bond which attracts only interest but leaves the capital unpaid is referred to as
- A.a long-term loan
- B.a development bond
- C.a redeemable bond
- D.an irredeemable bond.
Show the answer and explanation
Answer: D (an irredeemable bond.)
Explanation
An irredeemable bond is never repaid; the holder only receives interest on it.