Firms and governments pay interest to the lenders that purchase their bonds.

Name: Firms and governments pay interest to the lenders that purchase their bonds.
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Question

Quizplus · Accepted Answer

This statement is true. When a firm or government issues bonds, they are borrowing money from lenders. To compensate the lenders for their investment, the firm or government pays them interest on a regular basis until the bond reaches its maturity date.

Firms and Governments Pay Interest to the Lenders That Purchase