What kind of interest is used in the connection with bonds?(Баллов: 1)Periodic compounding.Compound interest.Simple interest.Annuity.

The type of interest used in connection with bonds is Simple interest.

Here's why:

1. Bonds are a type of debt instrument used by corporations and governments to raise capital. They are essentially a loan made by an investor to the issuer.

2. When a bond is issued, the issuer promises to pay the investor a certain amount of interest annually or semi-annually until the bond matures. This is known as the coupon rate.

3. This interest is calculated using simple interest, not compound interest. This means that the interest is calculated only on the initial amount (the principal) that was deposited or borrowed, not on any interest that has been added.

4. Therefore, if you buy a bond with a face value of $1,000 and a coupon rate of 5$50 in interest each year, regardless of whether the interest is paid annually or semi-annually.

5. This differs from compound interest, where interest is calculated on the initial principal and all of the accumulated interest from previous periods. Compound interest is typically used in savings accounts and other types of investments.

6. Annuity is a series of payments made at equal intervals, which can be used to calculate the present or future value of cash flows. It's not a type of interest, but a financial concept used in various financial calculations, including bonds.

7. Periodic compounding, on the other hand, is a type of compound interest where the interest is added to the principal at regular intervals. This is not used in the calculation of bond interest.

So, the correct answer is Simple interest.