A ________ Is a Formal Pledge (An IOU)obligating the Issuer

question 60

Multiple Choice

A ________ is a formal pledge (an IOU) obligating the issuer to pay interest periodically and repay the principal at maturity (a preset future date) to the lender.

• A) commercial bank loan
• B) corporate bond
• C) mutual fund
• D) bond indenture

---

Definitions:

Income From Operations

This refers to the profit realized from a business's normal core operations, excluding deductions of taxes and interest.

Transfer Price

The price at which goods and services are transferred between departments or divisions within the same company, often used for budgeting and accounting purposes.

Market Price

The present cost at which a good or service is available for purchase or sale.

Transfer Price

The price at which goods and services are transferred between departments or subsidiaries of the same company, often used for accounting and tax purposes.