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A what pays interest to the investor?

Updated: 9/17/2023
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14y ago

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corporate bond

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Q: A what pays interest to the investor?
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A pays interest to the investor.?

corporate bond


What is Contractual interest rate on a bond?

The contractual interest rate is the rate at which the borrower pays and the investor receives are determined.


What is uncapitalised interest?

It is interest that is paid separately. For an investor, it is paid out to the investor and not rolled into the investment.


Where does the interest on a 4 year zero coupon go?

It goes to the investor who buys the bond. A zero coupon bond is a bond in which, the investor need not pay any premium (coupon) above the face value of the bond while purchasing it. Let us say a company issues a $10,000 bond at a discount of 10% with zero coupon, it is enough if the investor pays $9000 to buy the bond. At the time of maturity he would get back $10,000. This 10% discount can be compared to the interest earned on the investment for the investor.


Who pays the interest you get from your bank?

The bank pays it to you. The interest reflects the return on the capital you have loaned to the bank.


How can SEBI protect the interest of investor in securities?

1962


What type of interest pays interest on principal only?

simple interest


How does an investor get ownership interest in a company?

by purchasing shares in the company


What is repaid to the investor on a bond's maturity date?

The principle and interest.


What type of annuity pays you a flat interest rate?

A tax deferred fixed annuity pays a flat interest rate.


When an investor's accounting period ends on a date that does not coincide with an interest receipt date for bonds held as an investment the investor must?

When an investor's accounting period ends on a date that does not coincide with an interest receipt date for bonds held as an investment, the investor must a. make an adjusting entry to debit Interest Receivable and to credit Interest Revenue for the amount of interest accrued since the last interest receipt date. b. notify the issuer and request that a special payment be made for the appropriate portion of the interest period. c. make an adjusting entry to debit Interest Receivable and to credit Interest Revenue for the total amount of interest to be received at the next interest receipt date. d. do nothing special and ignore the fact that the accounting period does not coincide with the bond's interest period.


Who pays interest on the national debt?

The people do.