Bonds have to be paid back plusMultiple Choiceinterest.stock.equity.debt.holding charges.
Question
Bonds have to be paid back plusMultiple Choiceinterest.stock.equity.debt.holding charges.
Solution 1
The correct answer is "interest." When you purchase a bond, you are essentially lending money to the issuer of the bond. In return, the issuer promises to pay you back the face value of the bond at a specific date in the future (the maturity date), plus periodic interest payments along the way.
Solution 2
The correct answer is "interest." When bonds are issued, they have to be paid back with interest. This is the cost of borrowing money.
Similar Questions
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