A bond is
A) A share in a corporation.
B) A coupon used to collect a dividend.
C) An insurance policy investor's purchase to protect against the possibility of falling stock prices.
D) A promise to repay a loan.

Question

Quizplus · Accepted Answer

A bond is a type of debt security that represents a promise to repay a loan. When an investor buys a bond, they are essentially lending money to the issuer (often a corporation or government) in exchange for regular interest payments and the eventual return of their initial investment at maturity. Unlike stocks, owning a bond does not give the investor ownership in the company.

A Bond Is