ECONOMICS
SAVING AND INVESTING
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Money Market Account
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Bonds
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Stocks
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Certificate of Deposit
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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: -bonds are a form of an IOUs (a promise to pay back some amount in the future); bonds have three key features: the bond’s par, the bond’s maturity, and the bond’s coupon payments.
Detailed explanation-4: -Bond Example 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.