Question

Please help asap!!

what is the correct definition of a bond?

a. an agreement in which an investor deposits money in a bank account, and the bank invests that money wit a promise to slit any returns with the investor.

b. an agreement in which an investor pays to own a certain portion or percentage of a company, and the company pays the investor dividends based on how it performs.

c. an agreement in which an investor loans money to a company's or government, and the company or government promises to repay the loan with interest over a period of time.

d.an agreement in which an investor receives money from a company or government, and the company or government benefits from labor of the investor.

Answer 1

Correct answer:

c. an agreement in which an investor loans money to a company or government, and the company or government promises to repay the loan with interest over a period of time.

Bonds are bought and sold in the bond market (as opposed to the stock market). The bond market consists of the government issuing securities to those who lend money for government projects, as well as corporations taking on debt and issuing securities so that they can raise money for projects or expansions.