Today we have a question relating to the new 2019 syllabus for F2.
The question was:
Another name for the quantity of money the bondholder receives as interest payments, which is usually expressed as a percentage of the par value is called which one of the following?
This question relates to ‘A: Financing Capital Projects’ and is a slightly different version of the question in one of our free mock exams.
The correct answer is…
The historical term ‘coupon’ as some bonds would exist in a physical presence and the holder would return the coupon to receive any due interest.
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