QUESTION 4

1. A bond is:

an ownership interest in a corporation that gives the owner preferences with respect to the assets of the corporations and dividends paid by the corporation.

a debt instrument that allows the holder to convert the debt into a number of shares in the corporation having a value equal to the amount of the bond.

a debt instrument that requires the corporation to pay the holder a stated amount of interest for a stated period of time and then to pay the holder the amount of the bond.

an ownership interest in the corporation that allows the holder to vote in corporate elections.