Question on: JAMB Commerce - 2012
Securities that entitle the investor to coupon rates are
A
bonds
B
equities
C
warrants
D
treasury bills
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Correct Option: B
Bonds are debt securities that pay a fixed or variable coupon rate to the investor. Equities represent ownership in a company and do not typically pay coupon rates, but rather dividends. Warrants are options to purchase stock at a specified price. Treasury bills are short-term debt instruments that do not pay coupon rates; they are sold at a discount.
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