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

afeezaudu

11 years ago

d ans is irredemable bond bcause is only irredemable bond dat attract only interest nd leave d capital unpaid while redemable bond are bond dat are payable for a fixed date.

Richie_rich24

2 months ago

The correct answer is: D. an irredeemable bond
Explanation:
Irredeemable bond (also called a perpetual bond) is a bond that:
Pays interest (coupon) regularly
Never repays the principal (capital)
Other types:
A. Long-term loan – Can be repaid over time, not necessarily irredeemable
B. Development bond – Issued for funding projects, usually redeemable
C. Redeemable bond – Pays interest and returns the capital at maturity
Quick Tip:
Irredeemable = Interest only, principal never repaid
Redeemable = Interest + Principal returned at maturity