Asked by mackenzie newland on Jul 18, 2024

verifed

Verified

When a company sell bonds, it is ______________ money.

A) Borrowing
B) Lending
C) Investing
D) Reinvesting
E) Financing

Borrowing

The act of obtaining funds from another party with the agreement to repay, typically with interest.

Sell Bonds

The act of disposing of bonds in exchange for cash before they mature.

Company

An organization or entity engaged in commercial, industrial, or professional activities, either for-profit or nonprofit.

  • Develop an understanding of the relationship linking the face value of bonds, their market valuation, and the dynamics of their maturity.
verifed

Verified Answer

MJ
Mariahbay JonesJul 22, 2024
Final Answer :
A
Explanation :
When a company sells bonds, it is essentially borrowing money from the investors who purchase the bonds. The company agrees to pay back the principal amount of the bond at a specified maturity date, along with interest payments at agreed intervals.