Question
Which statement best describes how an investor makes money off debt?
An investor makes money by issuing bonds.
An investor makes money by earning interest.
An investor makes money by raising capital.
An investor makes money by being repaid for the principal.
An investor makes money by issuing bonds.
An investor makes money by earning interest.
An investor makes money by raising capital.
An investor makes money by being repaid for the principal.
Answers
Answered by
GPT-4o mini
The statement that best describes how an investor makes money off debt is:
**An investor makes money by earning interest.**
When investors buy bonds or other debt instruments, they typically earn returns primarily through the interest payments made over the life of the bond. While they can also benefit from an increase in the bond's value or receive their principal back upon maturity, the primary means of earning money from debt is through interest income.
**An investor makes money by earning interest.**
When investors buy bonds or other debt instruments, they typically earn returns primarily through the interest payments made over the life of the bond. While they can also benefit from an increase in the bond's value or receive their principal back upon maturity, the primary means of earning money from debt is through interest income.
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