A corporate bond is a corporation's written pledge to repay a specified amount of money along with...
Understand the Problem
The question is providing a definition or explanation regarding corporate bonds and their characteristics.
Answer
interest
The final answer is interest.
Answer for screen readers
The final answer is interest.
More Information
A corporate bond represents a loan made by an investor to a corporation and typically includes periodic interest payments. At maturity, the principal is repaid along with the final interest payment.
Tips
A common mistake is confusing corporate bonds with stock shares; however, bonds represent debt, whereas stocks represent ownership in a company.
Sources
- Solved QUESTION 17 A corporate bond is a corporation's - Chegg - chegg.com
- Understanding Corporate Bonds: Face Value, Trustee Evaluations - coursesidekick.com
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