Respuesta :
Answer:
c. fixed interest payments
Explanation:
Bonds are debt securities issued by Corporates to raise long term finance which is usually for more than 3 years.
The issuer of such securities agree to pay a rate of return, in the form of coupon interest payments periodically, apart from repayment of the principal amount at the end of the period.
The coupon payments represent interest yield whereas difference in face value and market value represents capital gain yield.
A fixed coupon rate of interest results in a bond paying fixed amount of interest each year.
A fixed interest coupon rate results in a bond paying a fixed interest rate each year, in the form of fixed periodic interest payments. Thus, Option C. is the correct statement.
What is Fixed Income Security?
A fixed income bond is an investment that provides returns in the form of periodic interest payments and a return on the principal's maturity.
Bonds are such type of fixed income security issued by Corporates for long-term savings that are usually more than 3 years.
The issuer of these fixed income securities agrees to pay the return, in the form of periodic payment of interest coupon, along with the payment of the principal amount at the end of the period.
Coupon payments represent interest rates while differences in face value and market value represent the cash yield.
Thus, Option C. is the correct answer.
To learn more about fixed income security, refer to the link:
https://brainly.com/question/25965295
