A corporate bond is a ________ issued by a corporation when it borrows money.
A) promissory note
B) certificate of deposit
C) private stock
D) derivative security

Question

Quizplus · Accepted Answer

A corporate bond is a promissory note, which is a written promise to pay a specific amount of money on a specific date or on demand. The bondholder lends money to the corporation and in return, the corporation promises to pay the bondholder the face value of the bond (the principal) plus interest at a predetermined rate at specific intervals until the bond matures.

A Corporate Bond Is a ________ Issued by a Corporation