The type of corporate security that pays periodic interest as well as the eventual return of principal is: A) Preferred stock B) Debt Securities C) Equity Securities D) Fixed asset loans

Business Dec 25, 2020

The type of corporate security that pays periodic interest as well as the eventual return of principal is:

A) Preferred stock

B) Debt Securities

C) Equity Securities

D) Fixed asset loans

Expert Solution

The correct answer to the given question is option B) Debt Securities.

The debt security is a type of corporate security which pays fixed periodic interest or coupon payments along with repayment of principal amount at maturity to the investors.

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