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Virtually all bonds have each of the following except

a. interest payments
b. maturity date
c. voting rights
d. an indenture

User Pkruk
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1 Answer

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Final answer:

Bonds come with interest payments, a maturity date, and an indenture, but not with voting rights, which are typically reserved for equity investors like shareholders.

Step-by-step explanation:

Virtually all bonds include certain features: interest payments (coupon), a maturity date, and an indenture which is the formal agreement between the bond issuer and the bondholders. However, bonds typically do not come with voting rights; this is a characteristic associated more with equities, particularly common stock.

Bonds are debt securities issued by entities such as companies or governments as a way of raising capital. Investors who buy bonds are promised to receive periodic interest payments until the bond reaches its maturity date, at which point the face value of the bond is repaid to the bondholder.

Unlike shareholders in a corporation, bondholders do not have a say in the day-to-day operations or the strategic decisions of the entity that issued the bond. Voting rights are predominantly a feature of equity ownership and not debt ownership, underscoring a fundamental difference between these two types of investment.

User Glenn Sampson
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