Bonds are long-term debt instruments that typically have a maturity of more than one year. They are issued by corporations, governments, and other entities to raise funds for various purposes. Bondholders receive periodic interest payments and the return of their principal when the bond matures.

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Bonds Are

Question 46

Multiple Choice

Bonds are

A) a series of short-term debt instruments.
B) a hybrid form of financing used to raise large sums of money from a diverse group of lenders.
C) a form of equity financing that pays interest.
D) long-term debt instruments.

Correct Answer: