1.   Most bonds pay interest semiannually at a rate equal to one-half of the annual coupon rate.

2.   Suppose, for example, that the bond pays coupons every March and September.

3.   And other bonds are still paying their promised interest.

4.   Asset-backed bonds pay interest and principal, just like standard bonds.

5.   Banks are first to lose because their steady, usually rich dividends compete with those paid by bonds.

6.   Because they give holders the option to convert, the bonds typically pay an interest rate that is comparable U.S. Treasury bonds.

7.   Because of that increased risk, longer-term bonds will pay a higher yield than shorter-term bonds to compensate for the added risk assumed.

8.   Bonds issued by Arizona municipalities are in high demand by Arizona residents because these bonds pay interest that skirts both federal and state taxes for local investors.

9.   Bonds pay taxable interest that a retirement account can shield, the logic goes, while most of the gains from stocks are not taxable until they are sold.

10.   A dual currency bond pays interest in one currency and principal in another.