Business
Business, 24.03.2020 02:30, mxrvin4977

Suppose Van would like to invest $2,000 of his savings. One way of investing is to purchase stock or bonds from a private company. Suppose RoboTroid, a robotics firm, is selling bonds to raise money for a new lab—a practice known as (Debt or equity) finance. Buying a bond issued by RoboTroid would give Van (An IOU, a promise pay, from or a claim to partial ownership) the firm. In the event that RoboTroid runs into financial difficulty, (Van and other bondholders or the stockholders) will be paid first. Assuming that everything else is equal, a U. S. government bond that matures 10 years from now most likely pays a (higher or lower) interest rate than a U. S. government bond that matures 30 years from now.

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