A. earn interest
B. pay interest
C. earn floating rate
D. earn funding rate
✅ The correct answer is option A.
When bonds are called and redeem, they must be ceased to earn interest. Investors who purchase a company’s bonds receive interest on the bond and are promised a return on their investment at a future date. The future date is when a bond matures. Usually, the bond issuer repays the bond principal to the investor on the maturity date.
When bonds are called and redeem, they must be ceased to earn interest. Investors who purchase a company’s bonds receive interest on the bond and are promised a return on their investment at a future date. The future date is when a bond matures. Usually, the bond issuer repays the bond principal to the investor on the maturity date.