Which of the following attracts only interest but leaves the capital unpaid?
COMMERCE
JAMB 2023
Which of the following attracts only interest but leaves the capital unpaid?
- A. a development bond
- B. a long term loan
- C. an irredeemable bond
- D. redeemable bond
Correct Answer: D. redeemable bond
Explanation
A redeemable bond is a government bond which has no date of maturity and which therefore provides interest but can never be redeemed at full value.
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