Vidyalelo
Management · Q347

International Finance and Treasury

Graduate and Post Graduate · Management · question 347

Q347

If bonds are used as an investment vehicle by investors of institutions then bond must be

A.
automated
B.
discounted
C.
rated
Answer
D.
stocked

Answer: Option C

Solution

Answer: Option C
Solution:
If bonds are used as an investment vehicle by investors of institutions then bond must be rated. A bond, also known as a fixed-income security, is a debt instrument created for the purpose of raising capital. They are essentially loan agreements between the bond issuer and an investor, in which the bond issuer is obligated to pay a specified amount of money at specified future dates.