Concept:A redeemable bond is a loan instrument that pays regular interest, while the principal or capital is not repaid until the redemption date.
Explanation:A redeemable bond is issued when an investor lends capital to a company or government.
The issuer pays a fixed rate of interest on this capital at agreed intervals.
The bondholder receives only these interest payments during the life of the bond.
The original capital remains unpaid and is left outstanding until the maturity date.
It is only at maturity that the issuer redeems the bond and repays the capital.
Therefore, a redeemable bond is the option that attracts only interest while leaving the capital unpaid until redemption.
The other options are insurance principles, not investment instruments that attract interest.
Answer:D. Redeemable bond