On the statement of cash flows, the cash flows from investing activities section would include payments for retirement of bonds payable.
Hence, Option D is correct.
What do you mean by bonds?
- Governments and corporations issue bonds when they need to raise money. You are effectively lending the issuer money when you buy a bond. In return, they agree to pay you the whole amount of the loan on a specific date as well as regular interest payments (usually twice a year) throughout the repayment period. Bond rates have increased dramatically, providing investors with the opportunity to earn a good income.
- Inflation is anticipated to be around 3.5% by the end of 2023, and 10-year U.S. Treasury bonds presently yield more than that. Therefore, their "actual," or adjusted, yield could start to increase.
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