A bond which attracts interest but leaves the capital repaid is referred to as?

A. A redeemable bond
B. An irredeemable bond
C. A development bond
D. A long-term loan

Correct Answer:

Option B – An irredeemable bond

Explanation

The bond is per petrol, which is until death. The issuing authority or entity pays a specific interest rate periodically but provides no data on when the principal will be returned.