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:
Investors who invest in debt - related instruments (such as bonds) earn money through the interest payments made by the debtor. Issuing bonds is done by entities needing capital, not typically by individual investors. Raising capital is not how an investor makes money off debt. Repayment of principal just returns the initial investment, not profit. Interest is the income from debt investments.
Answer:
An investor makes money by earning interest