The term "buying a bond" is misleading because:
A)bonds are not available to the general public.
B)a bond can only be bought with assets other than money.
C)bonds represent a debt relationship so a bond buyer is actually lending money.
D)bonds are not owned, only held in trust for a buyer's beneficiaries.

Question

Quizplus · Accepted Answer

Buying a bond represents a debt relationship, where the buyer is actually lending money to the issuer of the bond, so the term "buying a bond" is misleading. Option A is incorrect as bonds are available to the general public. Option B is incorrect as bonds can be bought with money. Option D is incorrect as bonds are owned by the buyer and held in their investment portfolio.

The Term "Buying a Bond" Is Misleading Because