Knowee
Questions
Features
Study Tools

Corporate bonds are A. held by the borrowers.B.assets for the investors.C.a source of income for the issuing company.D.issued by the investors.

Question

Corporate bonds are

A. held by the borrowers.
B. assets for the investors.
C. a source of income for the issuing company.
D. issued by the investors.

🧐 Not the exact question you are looking for?Go ask a question

Solution

Corporate bonds are B. assets for the investors.

Here's why:

A. Corporate bonds are not held by the borrowers. In fact, it's the opposite. The borrowers (corporations) issue the bonds, and investors buy and hold them.

B. Corporate bonds are indeed assets for the investors. When an investor buys a corporate bond, they are essentially lending money to the corporation in exchange for periodic interest payments and the return of the principal amount at maturity.

C. Corporate bonds are not a source of income for the issuing company. They are a source of capital or funds. The company has to pay interest on these bonds, which is an expense, not income.

D. Corporate bonds are not issued by the investors. They are issued by the corporations (borrowers) and bought by the investors.

This problem has been solved

Similar Questions

Fill in the Blank QuestionFill in the blank question.A mortgage bond is a corporate bond secured by various of the issuing .

Fill in the Blank QuestionFill in the blank question.A corporate bond is a corporation's written pledge to repay a specified amount of money along with .

Which of the following is an equity security?Multiple ChoiceU.S. Treasury bonds.Corporate notes.Corporate bonds.Municipal bonds.Company common stock.

The bond market is also known as the _____a.debt marketb.fixed income marketc.credit marketd.all of the above

If I may ask, what do you believe would be a good balance or blend when it comes to bank loans vs corporate bonds?

1/3

Upgrade your grade with Knowee

Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.