A ________ is a debt instrument that enables the issuer (borrower)to raise capital by promising to repay the principal along with interest on a specified date (maturity).
A)fronting loan
B)stock
C)bond
D)forward contract

Question

Quizplus · Accepted Answer

A bond is a debt instrument that promises the repayment of the principal along with interest on a specific maturity date. Fronting loan, stock, and forward contract are not the appropriate options as they do not involve the repayment of principal and interest.

A ________ Is a Debt Instrument That Enables the Issuer