The correct answer is A. remains same.
A coupon payment is a fixed amount of money that a bond issuer pays to the bondholder on a regular basis, usually every six months. The coupon payment is usually specified as a percentage of the face value of the bond. For example, a bond with a face value of $1,000 and a coupon rate of 5% would pay a coupon payment of $50 every six months.
The coupon payment is fixed at the time of issuance and remains the same for the life of the bond. This means that the bondholder will receive the same amount of money in coupon payments every six months, regardless of changes in interest rates.
This makes bonds a relatively safe investment, as the investor knows exactly how much money they will receive in coupon payments. However, it also means that bonds are not as profitable as other investments, such as stocks, which can experience large price swings.
Here is a brief explanation of each option:
- Option B: becomes stable. This is not correct, as the coupon payment is fixed at the time of issuance and remains the same for the life of the bond.
- Option C: becomes change. This is not correct, as the coupon payment is fixed at the time of issuance and remains the same for the life of the bond.
- Option D: becomes low. This is not correct, as the coupon payment is fixed at the time of issuance and remains the same for the life of the bond.