Annuity instalments
Dividend payments
Interest payments
Rental payments
Answer is Right!
Answer is Wrong!
The correct answer is C. Interest payments.
When you invest in corporate bonds, you are lending money to a company. The company agrees to pay you back the principal amount of the loan, plus interest, at a specified interest rate and on a specified date. The interest payments are typically made semi-annually, but they can also be made quarterly or annually.
Annuity instalments are a series of payments made over a period of time, usually for the purpose of providing retirement income. Dividend payments are a distribution of a company’s profits to its shareholders. Rental payments are payments made by a tenant to a landlord for the use of property.
In conclusion, Naveen will receive interest payments on his corporate bonds.