Question

Most bonds:     a. are interest-bearing obligations of governments or corporations. b. are floating-rate securities. c....

Most bonds:

   
a. are interest-bearing obligations of governments or corporations.
b. are floating-rate securities.
c. give bondholders a voice in the affairs of the corporation.
d. are money market securities.

Homework Answers

Answer #1

A bond is a financial instrument issued by an organisation that can be a corporation or government organisation. Most bonds-

A. Are interest-bearing obligation of governments or corporations.

Most bonds are fixed rate bonds and not floating rate securities. Owning a share and not a Bond gives the investor a voice in the affairs of the corporation. Most bonds and long term investments and hence are considered as a capital market investment rather than a money market investment.

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