A bond is a type of debt security which means that it represents borrowing by the firm. However, rather than getting a loan from a bank or other financial institution, the bond allows the funds to be obtained from a large number of parties under common standardized terms. Bonds can usually only be issued by governments or large, well known firms. Bonds obligate the issuer to make specified payments to the bondholder on specified dates over a specified time period (maturity). These specified payments are in the form of coupon payments and par value.

Bonds can be issued by corporations or governments. They can be considered interest only loans because the issuer pays only coupon payments until maturity and the face value at maturity. Unlike amortized loans, the issuer does not pay any part of par value during the life of the bond. For the annual coupon paying bonds, the number of times that coupons are paid indicates maturity. Once the bond is issued, the maturity declines as time passes and coupon payments are made.

As also understood from the information given, the statements in the options II, III, IV, V and VI are correct, so the correct answer is E. The statement in the option I is not correct because of the fact that bonds can be issued by corporations or governments.