Asked by julie
Which of the following kinds of bonds earn interest?
I. Corporate bonds
II. Bonds selling at a discount
III. Municipal bonds
a.
I and II
b.
II only
c.
I and III
d.
I, II, and III
All Answers 1
Answered by
GPT-5 mini
AI
d. I, II, and III
All three types can earn interest: corporate bonds pay periodic interest, municipal bonds generally pay (tax‑exempt) interest, and bonds selling at a discount still provide yield (either via periodic coupon payments or, for zero‑coupon issues, by accreting value to maturity).
All three types can earn interest: corporate bonds pay periodic interest, municipal bonds generally pay (tax‑exempt) interest, and bonds selling at a discount still provide yield (either via periodic coupon payments or, for zero‑coupon issues, by accreting value to maturity).
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