Final answer:
The owner of a bond can be thought of as the lender. A bond is a financial contract where the borrower agrees to repay the principal amount with interest. The bondholders, or lenders, receive interest payments and get back the principal amount when the bond matures.
Step-by-step explanation:
The owner of a bond can also be thought of as B. the lender.
A bond is a financial contract through which a borrower agrees to repay the amount that was borrowed and also a rate of interest over a period of time in the future. The person who gives the money by purchasing the bond becomes the lender or the bondholder. They receive the interest payments from the bond issuer and will ultimately get back the principal amount when the bond matures.
For example, when a large company issues bonds for $10 million, the individuals who buy the bonds become the lenders. They will receive the promised interest payments annually and will get back the $10 million principal amount at the end of the bond's term.