which statement best describes how an investor makes money off debt?\n\nan investor makes money by issuing…
which statement best describes how an investor makes money off debt?\n\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 lends money (acts as a creditor), they earn interest over the period of the loan. Issuing bonds is typically done by entities seeking capital (not the investor). Raising capital is also an action of the entity borrowing. Being repaid the principal just returns the initial amount, not the profit. Interest is the earnings for the investor.
Answer:
An investor makes money by earning interest.