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What is a bond? in your own words. economics.​

User Turismo
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2 Answers

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25 votes

Answer:

A bond is a fixed income Instrument that represents a loan made by investors to a borrower ( typically corporate or governmental).

User Hezekiah
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25 votes

Answer:

A bond is simply a loan taken out by a company. Instead of going to a bank, the company gets the money from investors who buy its bonds. In exchange for the capital, the company pays an interest coupon, which is the annual interest rate paid on a bond expressed as a percentage of the face value.

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