PRC-3 · Chapter 4 · Question 33 of 65
To finance a new bridge, a company issues long-term certificates to public investors, promising to pay them 8% interest annually and return their principal in 15 years. What are these certificates called?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Corporate bonds or debentures
Explanation
Bonds and debentures are long-term debt instruments issued to the public, carrying a fixed interest rate and a set maturity date.
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