What is typically the interest payment structure of long-term bonds?

Long-term bonds typically have a fixed interest rate structure, meaning that the interest payments remain constant over the life of the bond. This feature allows investors to predict their cash flow, as they can expect the same amount has to be paid at regular intervals, usually semi-annually or annually, until the bond matures.

The predictability of fixed interest payments makes long-term bonds more attractive to risk-averse investors seeking stable income. This contrasts with variable interest rate structures, which can fluctuate based on market conditions, adding uncertainty to the cash flows an investor receives.

Some bonds might not make interest payments at all or may pay all interest at maturity; however, these are less common for traditional long-term bonds and typically fall into specific categories such as zero-coupon bonds. Hence, the fixed interest rate structure is the prevailing norm, providing both issuers and investors with a clear framework for financial planning and investment returns.