A bond is long- term if its maturity is ______.A．between one and ten years.B．is less than a year.C．ten years or longer.D．within 20 years.

单项选择题

Apart from borrowing from banks, a firm or an individual can obtain funds in a financial market in two ways. The most common method is to issue a debt instrument, such as a bond or a mortgage, which is a contractual agreement by the borrower to pay the holder of the instrument fixed amounts at regular intervals (interest and principal payments) until a specified date (the maturity date), when a final payment is made. The maturity of debt instrument is the time (term) to that instrument"s expiration date. A debt instrument is short - term if its maturity is less than a year and long- term if its maturity is ten years or longer. Debt instruments with a maturity between one and ten years are said to be intermediate- term.
The second method of raising funds is by issuing equities, such as common stock, which are claims to share in the net income (income after expenses and taxes) and the assets of a business. If you own one share of common stock in a company that has issued one million shares, you are entitled to one millionth of the firm"s net income and one millionth of the firm"s assets. Equities usually earn periodic payments (dividends) and are considered long - term securities because they have no maturity date.
The main disadvantage of owning a corporation"s equities rather than its debt is that an equity holder is a residual claimant; that is, the corporation must pay all its mature debt holders before it pays its equity holder. The advantage of holding equities is that equity holders benefit directly from any increase in the corporation"s profitability or asset value because equities confer ownership rights on the equity holders. Debt holders do not share in this benefit because their dollar payments are fixed.

A bond is long- term if its maturity is ______.

A．between one and ten years.
B．is less than a year.
C．ten years or longer.
D．within 20 years.