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When John bought a Microsoft Bond, he was:

A) Lending money to Microsoft
B) Owning a share of Microsoft
C) Becoming a Microsoft employee
D) Trading stocks on the market

User SpoonNZ
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1 Answer

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Final answer:

John was lending money to Microsoft by buying a bond, meaning he became a creditor to the company expecting interest payments, without gaining any ownership or control.

Step-by-step explanation:

When John bought a Microsoft bond, he was lending money to Microsoft. A bond is a loan to a corporation or government that pays back the initial investment plus interest over time. Contrary to owning a share of the company, which represents part ownership, or becoming an employee, which involves working for the company, purchasing a bond is essentially becoming a creditor to the company. Bonds are debt securities, and by buying a bond, John is expecting to receive interest payments and the return of the bond's principal upon its maturity, without gaining any ownership or control over Microsoft. This is quite different from trading stocks on the market, where stocks represent ownership in a company.

User Petertc
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