Which statement best describes how an investor makes money off debt?

A. An investor makes money by issuing bonds.

B. An investor makes money by earning interest.

C. An investor makes money by raising capital.

D. An investor makes money by being repaid for the principal.

B. An investor makes money by earning interest.

Explanation:

When a company needs credit or loans, investors make money by earning a percentage of the debt periodically plus the money they will get back after the term is over.

There are generally two ways for which guarantees are made for an investor to be willing to invest:

Bonds and stocks provided by businesses are the means for investors to make a return on their money.

There is always some degree of risk involved in long and short term investments, therefore generally long term investments will give higher interest rates.

All business have a credit risk value which measures the ability they have to comply with the returning of investment

The more debt exposure a company has, it will have higher its overall interest rate.

Investment can be high among certain sectors, and expectatives on innovative sectors usually triggers large amounts of money to be invested.