ECONOMICS
SAVING AND INVESTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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a type of debt that a company issues to investors for a specified period of time.
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a share of ownership in a company.
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a type of investment that is only offered by depository institutions.
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a type of investment that has the potential for significant fluctuations over a short period of time.
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Detailed explanation-1: -A bond is a debt obligation, like an Iou. Investors who buy corporate bonds are lending money to the company issuing the bond. In return, the company makes a legal commitment to pay interest on the principal and, in most cases, to return the principal when the bond comes due, or matures.
Detailed explanation-2: -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-3: -Corporate bonds are issued by companies. Companies issue bonds rather than seek bank loans for debt financing in many cases because bond markets offer more favorable terms and lower interest rates. Municipal bonds are issued by states and municipalities. Some municipal bonds offer tax-free coupon income for investors.
Detailed explanation-4: -A corporate bond is a type of debt security that is issued by a firm and sold to investors. The company gets the capital it needs and in return the investor is paid a pre-established number of interest payments at either a fixed or variable interest rate.
Detailed explanation-5: -Treasury Securities. Bonds, bills, and notes issued by the U.S. government are generally called “Treasuries” and are the highest-quality securities available. Municipal Bonds. Corporate Bonds. Zero-Coupon Bonds.