ECONOMICS (CBSE/UGC NET)

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 investment in which an investor loans money to an entity which borrows the funds for a defined period in return for interest payments.

Detailed explanation-3: -A bond is a fixed income investment in which an investor loans money to an entity (typically corporate or governmental), which borrows the funds for a defined period of time at a variable or fixed interest rate.

Detailed explanation-4: -A debt instrument is an asset that individuals, companies, and governments use to raise capital or to generate investment income. Investors provide fixed-income asset issuers with a lump-sum in exchange for interest payments at regular intervals.

Detailed explanation-5: -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.