A financial security that represents a promise to repay a fixed amount of funds is a

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A bond is a financial security that represents a promise to repay a fixed amount of funds. It typically involves an investor lending money to a corporation or government entity in exchange for periodic interest payments (coupons) and the repayment of the principal at a later date. Shares of stock represent ownership in a company, while dividends are payments made to shareholders out of a company's profits.

A Financial Security That Represents a Promise to Repay a Fixed