Commerce JAMB

Securities that entitle the investor to coupon rates are?

A. bonds
B. equities
C. warrants
D. treasury bills

Correct Answer:

Option A – bonds

Explanation

A bond is a debt security where the issuer (the borrower) issues the bond for purchase by the bondholder (the lender). It is also known as fixed income security as a bond usually gives the investor a regular or fixed return in the form of interest payments (sometimes called coupon payments).

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