Question 21
Financial InstitutionsA corporation can obtain funds by issuing bonds. A bond is a form of debt which falls due to repayment after
- A.6 months
- B.9 months
- C.2 years
- D.5 years
- E.10 or more years.
Show the answer and explanation
Answer: E (10 or more years.)
Explanation
Bonds are long-term loans, usually repaid after ten years or more.