The question describes a financial instrument that involves borrowing money, paying interest, and repaying the principal amount at maturity. Let's analyze the options provided:

1. **Bonds**: These are debt securities issued by corporations or governments to raise funds, where the issuer agrees to pay back the principal along with interest on specific dates.

2. **Notes Payable**: This refers to written promises to pay a specific sum of money at a future date, often used in business financing.

3. **Interest Payable**: This represents the amount of interest that is owed but not yet paid, usually reflected in the accounting records but not directly tied to the concept of a loan maturing.

4. **Taxes Payable**: This refers to the amount of taxes owed to government authorities and not related to loans.

Based on this analysis, the most appropriate answer that fits the description of a loan taken at a certain rate of interest for a definite time period and repaid on maturity is **a. Bonds**. Bonds encapsulate the characteristics of long-term borrowing where repayment occurs at maturity alongside interest.

Question

The question describes a financial instrument that involves borrowing money, paying interest, and repaying the principal amount at maturity. Let's analyze the options provided:

1. **Bonds**: These are debt securities issued by corporations or governments to raise funds, where the issuer agrees to pay back the principal along with interest on specific dates.

2. **Notes Payable**: This refers to written promises to pay a specific sum of money at a future date, often used in business financing.

3. **Interest Payable**: This represents the amount of interest that is owed but not yet paid, usually reflected in the accounting records but not directly tied to the concept of a loan maturing.

4. **Taxes Payable**: This refers to the amount of taxes owed to government authorities and not related to loans.

Based on this analysis, the most appropriate answer that fits the description of a loan taken at a certain rate of interest for a definite time period and repaid on maturity is **a. Bonds**. Bonds encapsulate the characteristics of long-term borrowing where repayment occurs at maturity alongside interest.

Knowee AI · Accepted Answer

The question describes a financial instrument that involves borrowing money, paying interest, and repaying the principal amount at maturity. Let's analyze the options provided:

1. **Bonds**: These are debt securities issued by corporations or governments to raise funds, where the issuer agrees to pay back the principal along with interest on specific dates.

2. **Notes Payable**: This refers to written promises to pay a specific sum of money at a future date, often used in business financing.

3. **Interest Payable**: This represents the amount of interest that is owed but not yet paid, usually reflected in the accounting records but not directly tied to the concept of a loan maturing.

4. **Taxes Payable**: This refers to the amount of taxes owed to government authorities and not related to loans.

Based on this analysis, the most appropriate answer that fits the description of a loan taken at a certain rate of interest for a definite time period and repaid on maturity is **a. Bonds**. Bonds encapsulate the characteristics of long-term borrowing where repayment occurs at maturity alongside interest.

It is a loan taken at a certain rate of interest for a definite time period and repaid on maturity.a.Bondsb.Notes payablec.Interest payabled.Taxes payable

Question

It is a loan taken at a certain rate of interest for a definite time period and repaid on maturity.

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