ECONOMICS
SAVING AND INVESTING
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
Equity
|
|
Debt
|
|
Loans
|
|
Bonds
|
Detailed explanation-1: -Bonds can be a very flexible way of raising debt capital. They can be secured or unsecured, and you can decide what priority they take over other debts. They can also offer a way of stabilising your company’s finances by having substantial debts on a fixed-rate interest.
Detailed explanation-2: -Issuing bonds is one way for companies to raise money. A bond functions as a loan between an investor and a corporation. The investor agrees to give the corporation a certain amount of money for a specific period of time. In exchange, the investor receives periodic interest payments.
Detailed explanation-3: -A corporate bond is a bond issued by a corporation in order to raise financing for a variety of reasons such as to ongoing operations, M&A, or to expand business. The term is usually applied to longer-term debt instruments, with maturity of at least one year.