Which are two features of a bond? -pays a coupon rate

-represents ownership in a company

-is perpetual

-can be “flipped” for profit

-has a maturity date

PICK TWO please

-pays a coupon rate

-has a maturity date

Explanation:

A bond is a debt instrument used mostly by governments and corporates to raise funds for long-term projects. The bond issuer borrows funds from the purchaser. The issuer offers to regularly pay interest on the borrowed amount until the maturity date to attract buyers or investors. To the investors or lenders, a bond is a long term investment tool.

The coupon rate determines the attractiveness of a bond. The coupon rate is the interest rate that the issuer will use to calculate the amounts to pay regularly.  Bonds have a maturity date. It is the time when the principal amount is to be paid back in full.

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