Asked by
William Mortenson
on Dec 02, 2024
Verified
Which of the following statements is most correct?
A) Bonds are non-amortized debt.
B) Bonds are promissory notes and serve as legal evidence of debt.
C) Bondholders are creditors of the companies that issue the bonds.
D) Both a. and b. are correct.
E) All of the above are correct.
Bonds
Fixed income investments where an investor loans money to an entity (corporate or governmental) that borrows the funds for a defined period at an interest rate.
Promissory Notes
Written promises to pay a specified sum of money to a certain entity on demand or at a defined future time.
Amortized Debt
A loan that is paid off over time through a series of fixed, regular payments that cover both principal and interest.
- Acknowledge the factors that affect the market price and proceeds from bonds preceding their maturity.
- Comprehend the duties that bond indentures serve and their crucial role in the bond market.
Verified Answer
MO
Learning Objectives
- Acknowledge the factors that affect the market price and proceeds from bonds preceding their maturity.
- Comprehend the duties that bond indentures serve and their crucial role in the bond market.