Select the correct answer from each drop-down menu. Identify the investment type and complete the description. offer corporations a loan. Investors tend to choose this investment type because it offers and.

The investment type or instrument that offers corporations a loan is a bond.

A bond is simply a debt title. The corporation issues a bond, and an investor buys it and becomes a bondholder. The corporation then, has to make periodic payments to the bondholder.

Investors tend to choose bonds precisely because bonds offer periodic payments, while stocks, which are the other common investment type, do not necessarily pay if the corporation does not do well in a given year.