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Which of the following attracts only interest b... - JAMB Commerce 2023 Question


Which of the following attracts only interest but leaves the capital unpaid?

A
a development bond
B
a long term loan
C
an irredeemable bond
D
redeemable bond
correct option: c
An irredeemable bond is a type of bond that does not have a maturity date. Investors in irredeemable bonds receive interest payments indefinitely, but the principal amount of the bond is not repaid unless the issuer decides to pay it off.
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