The correct statement is," Bonds benefited the citizens who purchased them in a way that the government repaid the bond purchasers with interest." The correct option is D.
Bonds are such securities issued by the government or any other body to procure or raise funds, and interest is payable on them at a predetermined fixed interest rate.
<h3>Bond instruments </h3>
- Bonds are an instrument issued by a borrower to the public who subscribe to them as a token of proof that the borrower has raised such amount from the investor, payable at a fixed time period.
- Bonds generally are beneficial as they are comparatively secured investments than the equities and debts and give more interest than any bank deposits or saving accounts.
- Bonds may be issued by a Government or any other corporate body to raise funds for a specific purpose, which is payable at a fixed rate of interest predetermined at the time of issue of such securities.
Hence, the correct option is D that the government benefits the purchaser of bonds in the way of repaying such bonds with interests to its subscribers.
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