A ________ is an instrument in which the issuer (debtor/borrower) promises to repay to the lender/investor the amount borrowed plus interest over some specified period of time.

Question

Quizplus · Accepted Answer

Bonds are debt instruments where the borrower (issuer) promises to repay the principal amount borrowed along with interest to the lenders (investors) over a specified period of time. This makes option A the best choice. Common stock and preferred stock are ownership securities, while T-bills are short-term debt instruments issued by the government.

A ________ Is an Instrument in Which the Issuer (Debtor/borrower)