Debt securities that require annual interest payments to bond holders are called _____.
A)bonds
B)dividends
C)preferred shares
D)retained earnings

Question

Quizplus · Accepted Answer

Bonds are debt securities that obligate the issuer to pay bondholders periodic interest payments and to repay the principal at maturity. Dividends are distributions of earnings to shareholders, preferred shares are a type of stock with fixed dividends, and retained earnings are profits kept in the company for reinvestment.

Debt Securities That Require Annual Interest Payments to Bond Holders