A document representing an interest-bearing debt of the issuer, usually a corporation or government, is called:
A) equity.
B) stock.
C) a bond.
D) capital.

Question

Quizplus · Accepted Answer

A bond is a debt instrument issued by corporations or governments to borrow money from investors. The issuer of the bond promises to pay interest periodically and return the principal amount at a specified date in the future. Bonds are considered less risky than stocks and provide a fixed income to the investor. Equity (A) represents ownership in a company, stock (B) is a type of equity that represents a share of ownership in a company, and capital (D) refers to the financial resources needed to fund a company's operations.

A Document Representing an Interest-Bearing Debt of the Issuer, Usually