ECONOMICS (CBSE/UGC NET)

ECONOMICS

MONEY

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Which two groups can issue bonds? (select both answers)
A
governments
B
corporations
C
consumers
D
militaries
Explanation: 

Detailed explanation-1: -Corporate bonds fall into two broad credit classifications: investment-grade and speculative-grade (or high yield) bonds.

Detailed explanation-2: -Corporate bonds are debt securities issued by private and public corporations. Companies issue corporate bonds to raise money for a variety of purposes, such as building a new plant, purchasing equipment, or growing the business.

Detailed explanation-3: -When companies want to raise capital, they can issue stocks or bonds. Bond financing is often less expensive than equity and does not entail giving up any control of the company.

Detailed explanation-4: -Security of bonds. Security for bonds suggests some kind of underlying asset that backs up the issue. Mortgage bond. Bonds can be backed by different assets. Collateral trust bonds. Equipment trust certificates. Debenture bonds. Convertible debentures. Guaranteed bonds. High yield corporate bonds. 27-Dec-2022

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