Question:
Which one of the following statements about corporate bonds is correct?
A. Corporate bonds are also known as stocks.
B. Corporate bonds are promises by a corporation to repay a loan.
C. Corporate bonds are illegal in the United States.
D. Corporate bonds are shares of ownership of a corporation.
Bonds:
Bonds represent a loan that is made by an investor or a business. A bond is defined as fixed income or an instrument that indicates a loan that an investor has. Bonds such as treasury bonds are a good investment as it offers fixed rates of income and safety.
Answer and Explanation:1
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The correct answer is option B. corporate bonds are promises by a corporation to repay loans. Bonds are securities to loans, as a bond is a debt...
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