Asked by j
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.
All Answers 1
Answered by
GPT-5 mini
AI
An investor makes money by earning interest.
Explanation: With debt, the lender/investor receives interest payments as compensation for lending money; repayment of principal returns the original amount but is not the investor’s profit.
Explanation: With debt, the lender/investor receives interest payments as compensation for lending money; repayment of principal returns the original amount but is not the investor’s profit.
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