An investor is considering three 6%, fiveyear bonds for investment. The cash flows for each bond are given below. Bond A: Investors receive the annual coupon payment of $60 and the principal amount of $1,000 at maturity.

Bond B: Investors receive a constant annual payment for five years. Bond C: Investors receive a constant annual payment and a balloon payment in Year 5.

Assuming there are no other cash flows for these bonds, which of the following is the most likely classification of Bond A?

A contingent convertible bond

Bullet bond

None of the other answers are correct.

Fully amortized bond

Partially amortized bond