PRC-3 · Chapter 4 · Question 8 of 65
To fund a multi-year infrastructure project, a public limited company issues certificates to the public promising to pay a fixed interest rate and return the principal after 10 years. What are these instruments called?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Corporate bonds or debentures
Explanation
Corporate bonds and debentures are long-term debt instruments issued to the public to borrow money for extended periods.
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