A credit market instrument that requires the borrower to make the same payment everyperiod until the maturity date is known as aA) simple loan.B) fixed-payment loan.C) coupon bond.D) discount bond
Question
A credit market instrument that requires the borrower to make the same payment everyperiod until the maturity date is known as aA) simple loan.B) fixed-payment loan.C) coupon bond.D) discount bond
Solution
The correct answer is B) fixed-payment loan. This type of loan requires the borrower to make the same payment every period until the maturity date. The payment usually includes both principal and interest.
Similar Questions
Which of the following investment referred to as fixed-income instrument that represents a loan made by an investor to a borrower (typically corporate or governmental)?*Bank DepositsCurrenciesMutual FundsStocks (Equity)Real EstateInsurance
It is a loan taken at a certain rate of interest for a definite time period and repaid on maturity.a.Bondsb.Notes payablec.Interest payabled.Taxes payable
The bond market is also known as the _____a.debt marketb.fixed income marketc.credit marketd.all of the above
It is an instrument of short-term borrowing by the Government of India maturing in less than one year. (a) l (b) (c) (d) None of the aboveAnswer choicesSelect only one optionREVISITCommercial bilTreasury billCall moneyShares
A(n) is a financial instrument that obligates a borrower to repay money with interest to a lender (which may be a government municipality or corporation).
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.