Which of the Following Best Illustrates Why a Bond Is

question 39

Multiple Choice

Which of the following best illustrates why a bond is a type of loan?

• A) The issuers of bonds make regular payments to bondholders.
• B) When a company issues a bond, the buyer of that bond becomes an owner of the issuing company.
• C) Funds raised are used to finance long-term projects.
• D) When an investor buys a bond from an issuer, the investor is giving money to the issuer, with the assurance that it will be repaid at a date in the future.

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Definitions:

Complimentary Close

The polite concluding phrase in a letter or email, such as "Sincerely" or "Best regards," that precedes the sender's signature.

Form Messages

Predesigned messages used in communication to save time and ensure consistency in conveying information.

Routine Responses

Communications that are standard or usual reactions to common situations or inquiries.

Appreciation Messages

Communications that express gratitude or acknowledgment of others' efforts or achievements.