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What is a bonds income payment called?

Sagot :

Payments made to Bondholder is called Interest Payments, also known as Coupon fee. Thus the answer would be Interest Payments.

The interest payments provided by businesses to the bondholder are typically made every two years, but they can be for almost any length of time. Even zero coupon bonds exist, which just pay the face amount when they mature.

Debt is a common way for businesses to finance growth. Bond sales are a traditional way to accomplish this, but bank funding and loans are also options. Bond Holders are those who own bonds.

The bond market is particularly used by big businesses. Because of the significant cost to established businesses—both financially and in terms of the potential loss of control—private equity is not recommended.

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