The reason investors buy bonds is to ________.
A) earn interest
B) own controlling interest in the company
C) exercise voting rights in a company
D) receive dividend payments

Question

Quizplus · Accepted Answer

The primary reason investors buy bonds is to earn interest. Bonds are debt securities in which an investor lends money to a borrower (usually a corporation or government) for a set period of time at a fixed interest rate. The borrower pays interest during the time period and then returns the principal investment to the investor at the end of the bond term. Therefore, investors receive regular interest payments and the return of their principal investment at the end of the bond's term.

The Reason Investors Buy Bonds Is to ________