A(n) ________ is a contractual obligation of a company to repay the holder the amount of his or her original investment plus interest at a specified future date.
A) bond
B) equity
C) common stock
D) capital stock

Question

Quizplus · Accepted Answer

Bonds are debt securities where a company promises to pay back the investor their principal amount with interest at a specified future date. Equity refers to ownership in the company and does not have a fixed repayment date. Common stock and capital stock refer to shares of ownership in a company, but do not have the guaranteed repayment feature of a bond.

A(n) ________ Is a Contractual Obligation of a Company to Repay