A bond is a written agreement that specifies a company's responsibility to pay interest and to repay the principal to the bondholders at the end of the term of the bond.

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This statement is true. Bonds are debt securities that represent a loan made by an investor to a borrower, typically a corporation or government entity. The terms of the bond, including the interest rate, maturity date, and repayment of principal, are outlined in a written agreement known as a bond indenture.

A Bond Is a Written Agreement That Specifies a Company's