Which of the following attracts only interest but leaves the capital unpaid?

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

Correct Answer:

Option D – an irredeemable bond

Explanation

Irredeemable bond; a government bond which has no date of maturity and which therefore provides interest but can never be redeemed at full value.