The correct answer is: A. income bond
An income bond is a type of bond that pays interest only when the issuing company has enough earnings to cover the interest payments. If the company does not have enough earnings, it may not pay interest on the income bonds. Income bonds are considered to be a riskier investment than other types of bonds, because there is no guarantee that the interest payments will be made.
A. Income bond: An income bond is a type of bond that pays interest only when the issuing company has enough earnings to cover the interest payments. If the company does not have enough earnings, it may not pay interest on the income bonds. Income bonds are considered to be a riskier investment than other types of bonds, because there is no guarantee that the interest payments will be made.
B. Interest bond: An interest bond is a type of bond that pays interest on a regular basis, regardless of the issuing company’s earnings. Interest bonds are considered to be a safer investment than income bonds, because there is a guarantee that the interest payments will be made.
C. Payment bond: A payment bond is a type of bond that is used to guarantee the payment of a specific amount of money. Payment bonds are often used in construction projects, to guarantee that the contractor will pay the subcontractors and suppliers.
D. Earning bond: There is no such thing as an earning bond.