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Which of the following is NOT one of the basic components of bonds?

A Coupon rate
B Maturity
C Liquidity
D Per value

User Paul Omta
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1 Answer

3 votes

Answer

Hi,

The correct answer option is {c} Liquidity

Step-by-step explanation

The basic principle of bonds is that the investor loans money to the bond’s issuer who pays interest on the loan typically twice a year. The common three characteristics of bonds are the face value which is the principal portion of the loan, maturity which is the day the bond comes to due and the coupon which is the size of interest paid.

Hope this helps!

User CroaToa
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