Bonds : Bonds is a financial contract between is the issuer of the bonds and purchaser of the bonds. Bonds. Bonds can be issued at par value , at discount value and at premium also. Price of the bonds is depends on the rate of interest in market and rate of interest of bonds.
Due to the change in interest rate of bonds and market rate of interest bonds price is always change.
Interest on Bonds are paid on the basis of periodical it may be yearly, Half yearly an sometimes it may be quarterly also.
Bonds holders are entitled only for the interest and he have no other right in profit of the business in other words bonds carry no corporate ownership privileges.
As per the above explanation,
Answer = Option C = Bond prices remain fixed over time.
Get Answers For Free
Most questions answered within 1 hours.