A bond is a
A)financial intermediary.
B)certificate of indebtedness.
C)certificate of partial ownership in an enterprise.
D)None of the above is correct.

Question

Quizplus · Accepted Answer

A bond is a certificate of indebtedness, meaning that it represents a loan made by an investor to a borrower (such as a corporation or government entity) that promises periodic interest payments and the return of the principal investment at a specified future date. This distinguishes it from financial intermediaries (such as banks or investment companies), which facilitate transactions between various parties, and partial ownership in an enterprise (such as stocks), which represents an equity stake in a company.

A Bond Is a