Final answer:
A bond is a financial instrument representing a loan made by an investor to a borrower, typically a corporation or government entity. The issuer of the bond must pay back the principal and interest at specified intervals. Option (a) Bond is the correct answer to the question.
Step-by-step explanation:
A bond is a debt obligation where an investor loans money to an entity which in turn promises to repay the borrowed funds over a certain period of time. The repayment includes not just the principal amount borrowed but also interest payments that are made at a rate specified when the bond is issued. Bonds come in various types, such as corporate bonds, which are issued by firms, municipal bonds by cities, state bonds by U.S. states, and Treasury bonds by the federal government through the U.S. Department of the Treasury.
Answering the question, option (a) Bond is the correct term that describes a debt obligation where an investor loans money to an entity, which is obligated to pay back the principal amount along with interest over a period of time.