[amp_mcq option1=”Annuity instalments” option2=”Dividend payments” option3=”Interest payments” option4=”Rental payments” correct=”option3″]
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.