What are financial securities that represent promises to repay a fixed amount of funds?

Question

Quizplus · Accepted Answer

Bonds represent a promise to repay a fixed amount of funds (known as the principal) plus interest to the bondholder at a future date. Shares represent ownership in a company, and while they may provide a return on investment, they do not guarantee a fixed repayment of funds. Savings accounts and certificates of deposit may provide a fixed interest rate, but they are not securities that represent a promise to repay funds.

What Are Financial Securities That Represent Promises to Repay a Fixed