Final answer:
The answer to the question is 'D. bond,' which is a long-term debt obligation that includes terms specifying the borrowed amount, interest rate, and repayment time.
Step-by-step explanation:
A bond represents a long-term debt obligation issued by a corporation or a government. The correct option is D. bond. When an entity issues a bond, it is effectively entering into a financial contract with the bondholder. The issuer agrees to repay the borrowed amount plus interest over a specified period of time.
Bonds can be issued by various types of borrowers, including corporations (corporate bonds), cities (municipal bonds), states (state bonds), and the federal government (Treasury bonds). The terms of a bond typically include the amount to be borrowed, the interest rate (bond yield), and the maturity date when the final repayment is due.