Bonds are IOUs or certificates of debts between lenders and borrowers. The following are characteristics of bonds EXCEPT:
A)term
B)profit margin
C)credit risk
D)tax treatment

Question

Quizplus · Accepted Answer

Profit margin is not a characteristic of bonds.
Key Takeaway: Bonds have a number of characteristics such as term or the length of time until they mature. They also carry a credit risk which is the chance that the borrower will fail to pay a portion of the principal or interest. Bonds also have unique tax laws that govern how much tax is collected on the interest.

Bonds Are IOUs or Certificates of Debts Between Lenders and Borrowers