Question

Suppose Van would like to invest $2,000 of his savings.

Answer 1

Answer:

The anwers are equity, a claim to partial owernship, van and other bod holders , higher.

Explanation:

Suppose Van would like to invest $2,000 of his savings.

One way of investing is to purchase stock or bonds from a private company.

Suppose RoboTroid, a robotics firm, is selling bonds to raise money for a new lab—a practice known as ___equity____ (Debt or equity) finance. Buying a bond issued by RoboTroid would give Van _____a claim to partial ownership____ (An IOU, a promise pay, from or a claim to partial ownership) the firm. In the event that RoboTroid runs into financial difficulty, _van and other bondholders______________ (Van and other bondholders or the stockholders) will be paid first.

Assuming that everything else is equal, a U.S. government bond that matures 10 years from now most likely pays a ___higher_______ (higher or lower) interest rate than a U.S. government bond that matures 30 years from now.