When a Corporation Issues a Bond

question 34

Multiple Choice

When a corporation issues a bond

• A)the purchaser of the bond assumes ownership rights in the corporation.
• B)it is making a promise to pay interest each year and to repay the principal at a stated time in the future.
• C)it is called equity capital.
• D)it is called financing through the stock market.
• E)it is making a promise to pay interest each year but not repay the principal.

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Definitions:

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