ECONOMICS
MONEY
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
loan that represents debt that the government or a corporation must repay to an investor
|
|
|
portion of ownership in a corporation
|
|
|
system that allows the transfer of funds between savers and borrowers
|
|
|
collection of financial assets
|
Detailed explanation-1: -1. What is a Bond? 1.1 A bond is a debt instrument in which an investor loans money to an entity (typically corporate or government) which borrows the funds for a defined period of time at a variable or fixed interest rate.
Detailed explanation-2: -A bond is a loan to a company or government. It pays investors a fixed rate of return.
Detailed explanation-3: -A bond represents a promise by a borrower to pay a lender their principal and usually interest on a loan. Bonds are issued by governments, municipalities, and corporations.
Detailed explanation-4: -A bond is a debt security, similar to an IOU. Borrowers issue bonds to raise money from investors willing to lend them money for a certain amount of time. When you buy a bond, you are lending to the issuer, which may be a government, municipality, or corporation.
Detailed explanation-5: -A bond functions as a loan between an investor and a corporation. The investor agrees to give the corporation a certain amount of money for a specific period of time. In exchange, the investor receives periodic interest payments. When the bond reaches its maturity date, the company repays the investor.