Which of the following scenarios involves the use of corporate bonds?
A) Nigel buys an IOU of Herbiscus Pharmaceuticals with a maturity period of eight years.
B) Belingtin Trade Inc. issues short-term promissory notes by keeping its stock as collateral.
C) Gary buys some shares of Transient Textiles and receives 20 percent of the profit.
D) Porliod Films takes a loan from the local bank to pay its debts to its investors.

Question

Quizplus · Accepted Answer

Corporate bonds are debt securities issued by corporations to raise capital, and an IOU with a maturity period of eight years from a corporation like Herbiscus Pharmaceuticals fits this description.

Which of the Following Scenarios Involves the Use of Corporate