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

Commerce
JAMB 2015

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
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Correct Answer: Option B
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.

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