Task: Class Definition Understanding (ontology: Business_Finance/Financial_Industry_Business_Ontology)

Which of the following definitions best describes 'variable coupon bond'?

A. bond whose principal adjusts over time with changes in an index
B. bond based on the return on an equity over time, i.e. the price and dividend payments or the total return (similar to total return swaps)
C. bond that has a floating interest rate
D. bond whose income may vary over time, because either the coupon rate or principal amount is related to a specific index, such as the Consumer Price Index

Answer: bond that has a floating interest rate