Bonds are

Question

Bonds are

Quizplus · Accepted Answer

Bonds are typically long-term debt instruments, with a maturity date that could range from a few years to several decades. They are generally issued by corporations, governments, and other organizations to borrow money from investors, who receive periodic interest payments (coupon payments) until the bond matures, at which point they receive the face value of the bond.

Option A is incorrect because bonds can be short-term, medium-term, or long-term, depending on their maturity date.

Option B is incorrect because equity financing involves issuing shares of stock in exchange for ownership in the company, and does not involve paying interest.

Option D is incorrect because bonds are not a hybrid form of financing, but rather a specific type of debt instrument that is distinct from other forms of financing such as stocks or loans.

Bonds Are