PRC-3 · Chapter 4 · Question 24 of 65
Which of the following financial instruments represents long-term public debt where the company issues certificates promising to pay fixed interest?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Corporate bonds or debentures
Explanation
Bonds and debentures are formal debt instruments issued to the public to secure long-term capital in exchange for regular interest payments.
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