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Company A buys bonds from Company B. The bonds carry with them contractual rights to annual interest and repayment of principal in 10 years. The
Company A buys bonds from Company B. The bonds carry with them contractual rights to annual interest and repayment of principal in 10 years. The price was quoted in an open market. What kind of instrument is this? Why? Select answer from the options below This is an equity instrument because Company A has purchased rights from Company B in the market. This is a long-term receivable because Company A will receive regular payments from Company B for 10 years. This is an equity instrument because Company A has the right to receive compensation from Company B. This is a debt instrument because it gives the holder the contractual rights to receive interest and principal payments
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