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:
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