Coupon rate is paid until the bond ____________.
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A. B. C. D.A
The coupon rate is the interest rate that a bond issuer pays to the bondholders. It is usually expressed as a percentage of the bond's face value and paid out periodically, usually semiannually or annually.
The answer to this question is A. Coupon rate is paid until the bond matures. When a bond matures, the issuer repays the face value of the bond to the bondholders. At this point, the bond ceases to exist, and the coupon payments stop.
In other words, until the bond matures, the issuer will continue to pay the coupon rate to the bondholders. This is one of the main benefits of owning bonds, as it provides a predictable stream of income to the bondholders.
Option B, "Expires," is not a correct answer because bonds do not have an expiration date. They have a maturity date, which is the date when the issuer must repay the face value of the bond.
Option C, "Is sold," is not a correct answer either. If a bond is sold, the new owner of the bond will receive the coupon payments until the bond matures. The payment of coupon rate is not affected by a change in ownership of the bond.
Option D, "Reach to its half-life to maturity," is not a correct answer either. The half-life of a bond refers to the point in time when half of the bond's original principal has been repaid. It has no direct relationship to the payment of the coupon rate.