A bond is
A) a claim on the assets of a corporation such that the purchaser has an ownership right in the corporation.
B) anything of value to which the firm has a legal claim.
C) a means of assuring that the business firm will pay its debts or fulfill other legal obligations.
D) a promise to pay for the use of someone else's money.

Question

Quizplus · Accepted Answer

A bond is essentially a financial instrument through which a borrower agrees to pay the lender interest and repay the principal at a future date, thus it is a promise to pay for the use of someone else's money.

A Bond Is