If you buy a bond issued by Intel, the bond is a(n):
A)liability to Intel and an asset to you.
B)liability to you and an asset to Intel.
C)liability to both you and Intel.
D)asset to both you and Intel.

Question

Quizplus · Accepted Answer

When you buy a bond issued by Intel, you are essentially loaning money to Intel. Therefore, the bond is a liability to Intel because they are obligated to pay back the principal and interest to you. However, the bond is also an asset to you because you hold a claim on the future payments from Intel.

If You Buy a Bond Issued by Intel, the Bond