Which statement best describes how an investor makes money off debt?

a. an investor makes money by issuing bonds.
b. an investor makes money by earning interest.
c. an investor makes money by raising capital.
d. an investor makes money by being repaid for the principal.

B. An investor makes money by earning interest.

Explanation:

When a company needs credit or loans, investors make money by earning a percentage of the debt periodically plus the money they will get back after the term is over.

There are generally two ways for which guarantees are made for an investor to be willing to invest:

Bonds and stocks provided by businesses are the means for investors to make a return on their money.

There is always some degree of risk involved in long and short term investments, therefore generally long term investments will give higher interest rates.

All business have a credit risk value which measures the ability they have to comply with the returning of investment

The more debt exposure a company has, it will have higher its overall interest rate.

Investment can be high among certain sectors, and expectatives on innovative sectors usually triggers large amounts of money to be  invested.

if interdependence implies a two-way dependence, and if each partner is equally dependent on the other for success, then there is an equal commitment to the making the partnership successful. the advantage is sustainability of the relationship, the disadvantage is that decisions are "democratic" and therefore may take longer to reach and more likely to be a compromise (which is not always the best solution). as the interdependence moves away from equality, the decisions become more influenced by the more independent partner. in the extreme the relationship becomes more dictatorial and more like "master-slave". generally the relationship has less commitment in both directions and is more likely to be temporary.

if one generalizes (and one shouldn't), equity partnerships, which is probably what is implied by interdependence, can be slow to progress or change but durable. the extreme alternative, independent-dependent partnerships tend to be efficient but more fragile.

hope this but you will have to site your own evidence. : )

yes i would go with c

hope i

-lavira: )