Irredeemable bonds have which characteristic?

• A. They have a fixed final maturity date
• B. They can be redeemed at will by issuer
• C. They are secured by fixed assets
• D. They have no fixed repayment date

Answer: (D)

Irredeemable bonds are perpetual; they have no fixed date on which the principal is repaid. Investors receive coupon payments for an indefinite period, with no scheduled maturity or repayment of the principal. This distinguishes them from bonds that have a defined maturity date or can be redeemed at the issuer’s option.

The other features describe scenarios that don’t apply to irredeemable bonds: a fixed final maturity would mean a set date to repay principal; being redeemable at the issuer’s will implies a callable feature, which contradicts having no fixed repayment date; and being secured by fixed assets relates to collateral rather than the timing of repayment.