Question

Bonds are issued:

A) By corporations, state, local, and federal governments.
B) Only by state and local governments and partnerships.
C) Only by corporations and partnerships.
D) By Moody's and Standard & Poor's.
E) By Securities Exchange Commission (SEC).

Answer 1

Bonds are issued by corporations, state, local, and federal governments.

Step-by-step explanation:

A bond is a financial contract through which a borrower agrees to repay the amount that it borrowed. Bonds are issued by corporations, as well as state, local, and federal governments. Corporate bonds are issued by firms, while municipal bonds are issued by cities, state bonds are issued by U.S. states, and Treasury bonds are issued by the federal government through the U.S. Department of the Treasury.