The correct answer is: B. discount bond
A discount bond is a bond that is sold at a price below its par value. The difference between the purchase price and the par value is called the discount. The bondholder will receive interest payments on the par value, and the bond will be redeemed at par value at maturity.
A classified bond is a bond that is issued with different features, such as different interest rates or maturity dates. These bonds are often used to raise money for specific projects or to attract different types of investors.
A compound bond is a bond that pays interest on both the principal and the interest that has already been earned. This type of bond can be more profitable for the bondholder, but it also carries more risk.
Consideration earning is the process of earning money from the use of assets. This can be done through interest, dividends, or capital gains.
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