Answer:
c. periodic interest payments.
Explanation:
A bond can be defined as a debt or fixed investment security, in which a bondholder (creditor or investor) loans an amount of money to the bond issuer (government or corporations) for a specific period of time.
Generally, a bond issuer is expected to return the principal at maturity with an agreed upon interest to the bondholder, which is payable at fixed intervals.
Coupon bonds also known as bearer bonds can be defined as a debt instrument which typically has a coupon (detachable paper slip) attached to represent the periodic interest payments made semiannually or annually depending on the arrangement.
Basically, the bondholder normally receive these coupons (detachable paper slip) from the bond issuer within the period in which the bond was issued and its maturity.
Hence, coupon bonds are bonds with coupons (detachable paper slip) attached that represent periodic interest payments to be collected by the bondholder.
