The term \"buying a bond\" is misleading because: a. Bonds are not available to
ID: 2479198 • Letter: T
Question
The term "buying a bond" is misleading because:
a.
Bonds are not available to the general public
b.
A bond can only be bought with assets other than money
c.
Bonds represent a debt relationship so a bond buyer is actually lending money
d.
Bonds are not owned, only held in trust for a buyer's beneficiaries
a.
Bonds are not available to the general public
b.
A bond can only be bought with assets other than money
c.
Bonds represent a debt relationship so a bond buyer is actually lending money
d.
Bonds are not owned, only held in trust for a buyer's beneficiaries
Explanation / Answer
correct option is "C" Bonds represent a debt relationship so a bond buyer is actually lending money
since the bond investors are lending money to organisations on issuance of bond ,the word Buying should be replaced with issuance or debt investment .
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