Bonds are:
A) a type of equity financing.
B) a short-term financial arrangement with periodic interest payments.
C) a debt instrument issued at discount with interest and principal repaid at maturity.
D) long-term debt instruments.

Question

Quizplus · Accepted Answer

Bonds are long-term debt instruments, typically with maturities ranging from 1 year to 30 years or more. They are issued by governments, corporations, and other organizations to raise capital for various purposes, such as funding projects or refinancing existing debt. Bonds are generally considered a safer investment than stocks, as they offer a fixed rate of return and are typically backed by the issuer's ability to repay the debt.

Bonds Are