A bond is:
A)a financial asset that represents partial ownership of a company.
B)a payment made periodically to all shareholders of a company.
C)an agreement in which a lender gives money to a borrower in exchange for a promise to repay the amount loaned plus an agreed-upon amount of interest.
D)a promise by the bond issuer to repay the loan,at a specified maturity date,and to pay periodic interest at a specific percentage rate.

Question

Quizplus · Accepted Answer

A bond is an agreement between a borrower and a lender, where the borrower promises to repay the loan at a specific maturity date and pay periodic interest at a particular rate. Bonds are debt instruments that allow corporations or governments to raise money by selling them to investors. Thus, the correct option is D.

A Bond Is