Bonds are long-term debt instruments used to raise large sums of money. They typically have a fixed interest rate and maturity date, and are issued by governments, companies, and other organizations to finance various projects or initiatives. Unlike equity financing, bonds do not confer ownership rights, but instead promise a fixed stream of income to their holders.

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Bonds Are ________

Question 168

Multiple Choice

Bonds are ________.

A) a series of perpetual short-term debt instruments
B) a form of equity financing that pays interest
C) long-term debt instruments used to raise large sums of money
D) a hybrid form of financing used to raise large sums of money from a diverse group of lenders

Correct Answer: