πŸ“’ Too many exams? Don’t know which one suits you best? Book Your Free Expert πŸ‘‰ call Now!

  • google app store apple app store
  • βœ–

      Question

      A debt investment in which an investor lends

      money to an entity (corporate or government) that borrows the funds for a defined period of time at a fixed interest rate is called as?
      A Coupon Correct Answer Incorrect Answer
      B Preference Share Correct Answer Incorrect Answer
      C Debenture Correct Answer Incorrect Answer
      D Share Correct Answer Incorrect Answer
      E Bond Correct Answer Incorrect Answer

      Solution

      A bond is an instrument of indebtedness of the bond issuer to the holders. The most common types of bonds include municipal bonds and corporate bonds. It is a debt security, under which the issuer owes the holders a debt and, depending on the terms of the bond, is obliged to pay them interest ( the coupon ) and/or to repay the principal at a later date, termed the maturity date.

      Practice Next
      ask-question