Which of the following is not a reason why investors purchase corporate bonds?
Understand the Problem
The question is asking to identify which option listed is not a reason for purchasing corporate bonds. It involves understanding the characteristics and benefits of corporate bonds.
Answer
Dividend income.
The final answer is Dividend income.
Answer for screen readers
The final answer is Dividend income.
More Information
Corporate bonds provide interest income and the potential for capital gains, but they do not offer dividend income, which is specific to stocks.
Tips
A common mistake is confusing interest income with dividend income, as both provide periodic payments. Remember, dividends are related to stocks, not bonds.
Sources
AI-generated content may contain errors. Please verify critical information
Thank you for voting!
