Final answer:
A bond is a financial contract between a borrower and an investor, where the borrower agrees to repay the amount borrowed with interest over time. Different types of bonds include corporate, municipal, state, and Treasury bonds, which are issued by corresponding entities to raise capital. The correct option is A. financial contract; a rate of interest
Step-by-step explanation:
An answer to the question "A bond is a form of ___________ through which a corporation agrees to repay the amount that was borrowed together with ___________ over a period of time in the future." would be:
A. financial contract; a rate of interest
A bond is essentially a financial contract, and when a corporation or government entity issues one, they are agreeing to borrow money from investors with the promise to pay back the principal amount along with a rate of interest at specific intervals over the term of the bond.
There are different types of bonds such as corporate bonds, municipal bonds, state bonds, and Treasury bonds; all serve as mechanisms for raising capital.
For instance, corporate bonds are issued by firms to finance various activities, while municipal bonds are issued by cities for local projects, and Treasury bonds are issued by the federal government, managed by the U.S. Department of the Treasury, to fund national expenditures. The correct option is A. financial contract; a rate of interest