Which of the following statements is true regarding a bond?
A)A bond is a certificate that acts as evidence of ownership in a corporation.
B)A bond is a certificate that represents a corporation's promise to repay a certain amount of money and interest in the future.
C)If you buy a bond from a company,you are borrowing money from the company.
D)Bondholders receive dividends semiannually.

Question

Which of the following statements is true regarding a bond?
A)​A bond is a certificate that acts as evidence of ownership in a corporation.
B)​A bond is a certificate that represents a corporation's promise to repay a certain amount of money and interest in the future.
C)If you buy a bond from a company,you are borrowing money from the company.
D)Bondholders receive dividends semiannually.

Quizplus · Accepted Answer

A bond is a debt security that represents a corporation's promise to repay a certain amount of money and interest in the future. It is not evidence of ownership in a corporation, nor does it involve borrowing money from a company. Bondholders receive interest payments, not dividends, and these payments may be semiannual or at other intervals.

Which of the Following Statements Is True Regarding a Bond