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A bond that is not to a government agency regarding a license or permit but has similar language is referred to as?

1) Municipal bond
2) Corporate bond
3) Treasury bond
4) Agency bond

1 Answer

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Final answer:

A bond that has similar language to a government agency bond but is not associated with a license or permit is known as a corporate bond, issued by private sector firms to raise capital.

Step-by-step explanation:

A bond that is not to a government agency regarding a license or permit but has similar language is referred to as a corporate bond.

Corporate bonds are issued by firms and are a type of debt security. They typically have similar language to government bonds but are not issued by a government agency.

For example, a government agency might issue a bond related to a license or permit, while a corporation might issue a bond related to a specific project or expansion.

A bond similar to a government agency bond but not associated with a license or permit and has a similar language is referred to as a corporate bond. Corporate bonds are financial instruments issued by companies as a way to raise capital. These bonds come with an agreement that the issuer will repay the borrowed amount plus interest over a predefined period. Unlike municipal bonds, which are issued by cities, or Treasury bonds, issued by the federal government, corporate bonds are the responsibility of the private sector firms that issue them.

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