Which of the following is a characteristic of a bond?
A) It is a short-term loan from a commercial bank.
B) It refers to capital raised by selling corporate shares.
C) It refers to a debt security used to raise capital.
D) It is a debt instrument on which dividends are paid.

Question

Quizplus · Accepted Answer

A bond is a debt security used by entities to raise capital, where the issuer owes the holders a debt and is obliged to pay interest and repay the principal at a later date.

Which of the Following Is a Characteristic of a Bond