An investor is MOST likely to receive regular interest payments from:

Prepare for the Canon Financial Institute CFIRS Exam with flashcards and multiple choice questions. Each question comes with hints and explanations for better understanding. Get ready to excel in your exam!

Regular interest payments are typically associated with fixed-income securities, such as bonds. A corporate bond is a debt instrument issued by a corporation to raise capital. When investors purchase corporate bonds, they effectively lend money to the issuer in exchange for periodic interest payments, which are usually made semi-annually and are known as coupon payments. The investor is also repaid the principal amount at maturity. This structure provides a predictable income stream, making corporate bonds a common investment choice for those looking for regular interest income.

In contrast, Treasury bills are short-term government debt securities that are sold at a discount and do not pay interest periodically; instead, the return comes from the difference between the purchase price and the face value at maturity. Futures contracts and option contracts are types of derivatives that provide leverage to bet on the future price movements of underlying assets but do not involve regular interest payments. They serve different purposes and are structured around price speculation rather than income generation. Therefore, the most straightforward way for an investor to receive regular interest payments among the options provided is through a corporate bond.

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