When a Corporation Issues a Bond

Multiple Choice

When a corporation issues a bond

A) it is called equity capital.
B) it is making a promise to pay interest each year but not repay the principal.
C) it is making a promise to pay interest each year and to repay the principal at a stated time in the future.
D) it is called financing through the stock market.
E) the purchaser of the bond assumes ownership rights in the corporation.