Answer :
Bonds generate income for investors by paying a specified amount to the investor at maturity.
What are bonds in investments?
Bonds are fixed income instruments that are used by investment in a business enterprise to raise funds for specific purposes.
When a bond is held by an investor till maturity, bondholders get back the entire principal, so bonds are a way to preserve capital while investing.
Therefore, bonds generate income for investors by paying a specified amount to the investor at maturity.
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D. Bonds pay a specific amount to the investor at maturity.