_____________ allow the investor to lend capital to get fixed payouts or returns at regular intervals and then receive the face value at a predetermined date in the future.

Question

Quizplus · Accepted Answer

Bonds are financial instruments that allow investors to lend capital to organizations or governments in exchange for fixed payouts or returns at regular intervals. These payouts are known as coupon payments and are typically paid out annually or semi-annually. The face value, or the principal amount of the bond, is returned to the investor at a predetermined date in the future known as the maturity date. This makes bonds a popular choice among conservative investors who are looking for a steady income stream and a relatively low-risk investment option.

_____________ Allow the Investor to Lend Capital to Get Fixed