Asked by bentley romanski on May 21, 2024

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Bondholders are creditors of the issuing corporation.

Bondholders

Investors or entities that hold debt securities, especially bonds, issued by corporations or governments, entitling them to interest payments and the return of principal.

Issuing Corporation

The company or entity that offers securities, like stocks or bonds, for sale to investors in order to raise capital.

Creditors

Individuals or entities to whom money is owed by another individual or entity, typically due to a loan or credit arrangement.

  • Acquire knowledge on the nature and features of bonds.
  • Comprehend the entitlements of bondholders in comparison to stockholders within a corporation.
verifed

Verified Answer

AP
Ashay PayneMay 24, 2024
Final Answer :
True
Explanation :
Bondholders lend money to the issuing corporation and in return, the corporation promises to pay back the loan with interest. Therefore, bondholders are considered creditors of the corporation.