A bond is essentially:
A) a stock.
B) a loan.
C) an equity.
D) a derivative.

Name: A bond is essentially: A) a stock. B) a loan. C) an equity. D) a derivative.
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Question

Quizplus · Accepted Answer

A bond is a loan where the issuer borrows money from investors and promises to pay interest over a specified period. It is not a stock (which represents ownership in a company), not an equity (which is ownership in assets), and not a derivative (which derives its value from an underlying asset).

A Bond Is Essentially