An instrument that matures at one specified time is known as a:
A)preferred share.
B)common share.
C)bond.
D)letter of credit.

Question

Quizplus · Accepted Answer

Bonds are debt securities that mature at a specific time, usually ranging from one to thirty years. At maturity, the bondholder receives the face value of the bond, which is also known as the principal. Preferred shares and common shares are equity securities, which do not have a set maturity date. A letter of credit is a financial document that guarantees payment to a seller by a buyer.

An Instrument That Matures at One Specified Time Is Known