Question

What are Bonds or Debentures?

a.

Short-term debt instruments

b.

Long-term debt instruments

c.

Equity instruments

d.

Hybrid securities

Answer: (b).Long-term debt instruments Explanation:Bonds or Debentures are long-term debt instruments where issuers promise to pay interest at a stipulated rate on the borrowed amount and refund the principal amount at the stipulated time on redemption of instruments.

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