Asked by Michelle Tseng on May 02, 2024
Verified
Bondholders are rewarded by receiving interest and a share of the company's profits.
Company's Profits
The financial gain realized when the revenues generated from business activities exceed the expenses, costs, and taxes needed to sustain the activities.
Interest
The cost of borrowing money or the return earned on an investment, typically expressed as a percentage.
- Explain the concept of bonds and comprehend their function as financial assets and instruments of indebtedness.
Verified Answer
ZK
Zybrea KnightMay 04, 2024
Final Answer :
False
Explanation :
Bondholders are rewarded through interest payments, but they do not receive a share of the company's profits, which are distributed to shareholders in the form of dividends.
Learning Objectives
- Explain the concept of bonds and comprehend their function as financial assets and instruments of indebtedness.