Q261
Longer debt instrument issued by government and corporations is considered as
A.
contraction bonds
B.
expansion bonds
C.
dollar bonds
D.
bonds
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
Longer debt instrument issued by government and corporations is considered as bonds. 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.