To supplement his income, Billy has invested in a financial instrument. Each year, he receives an interest payment on his investment. He will also receive an amount known as the principal on the maturity of the investment. Based on the given information, Billy has most likely invested in a(n) _____.
A) common stock
B) corporate bond
C) individual retirement account
D) free-service fund

Question

Quizplus · Accepted Answer

Billy's investment is most likely a corporate bond, as it provides regular interest payments and returns the principal amount at maturity.

To Supplement His Income, Billy Has Invested in a Financial