which statement best describes how an investor makes money off debt?\nan investor makes money by issuing…
which statement best describes how an investor makes money off debt?\nan investor makes money by issuing bonds.\nan investor makes money by earning interest.\nan investor makes money by raising capital.\nan investor makes money by being repaid for the principal.
Answer
Brief Explanations:
When an investor invests in debt - related instruments like bonds, they earn money through the interest payments made by the debtor. Issuing bonds is typically done by entities seeking capital, not by investors to make money. Raising capital is a goal of companies or entities, not how investors make money off debt. Being repaid the principal only returns the original investment, not profit. Interest is the earnings for the investor.
Answer:
An investor makes money by earning interest.