Bonds usually pay interest _________ per year.
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A. B. C. D.C
Bonds are a type of investment where the investor lends money to the issuer, such as a government or a corporation, in exchange for regular interest payments. The interest rate on a bond is usually fixed at the time of issuance, and the payments are typically made at regular intervals throughout the life of the bond.
The answer to the question "Bonds usually pay interest _______ per year" is B. Twelve times. This is because bonds typically pay interest on a semi-annual basis, which means twice per year. For example, if a bond has a fixed interest rate of 5%, the issuer would pay the investor 2.5% of the bond's face value every six months.
Since there are two six-month periods in a year, the bond would pay interest 2 times per year, or 12 times over the life of a 6-year bond. This assumes that the bond is held until maturity, at which point the investor would receive the full face value of the bond.
It's worth noting that not all bonds pay interest on a semi-annual basis. Some bonds may pay interest annually, quarterly, or even monthly. However, the most common frequency for bond interest payments is twice per year.