A corporate bond can be all of the following except: ______.

Question

Quizplus · Accepted Answer

A corporate bond is a debt security issued by a company to raise capital, and is typically an unsecured debenture bond that has a set maturity date and pays regular interest to the holder. It is also a negotiable security, meaning it can be bought or sold on a secondary market. However, it is not preferred stock, which is a type of equity security that represents ownership in a company and typically pays dividends to the holder. Thus, choice D is incorrect. Choice C is partially correct but incomplete as corporate bonds can have various maturities ranging from a few months to 30 years or more.

A Corporate Bond Can Be All of the Following Except