Question

A(n) is a long-term contract under which a borrower agrees to make payments of interest and principal on specific dates. There are four main types reflecting who the issuers are:1.Business2.Treasury?corporate, state and local government, and foreign. Each type differs with respect to and expected return. All have some common characteristics even though they may have different contractual features.

Answer 1

A bond is a financial contract where a borrower makes scheduled payments of interest and principal. Four main types of bonds include corporate, treasury, municipal, and foreign, each with specific terms, risks, and expected returns. Bonds are a primary source of raising financial capital for those entities.

Step-by-step explanation:

A bond is a long-term financial contract in which a borrower agrees to make payments of interest and principal on specified dates. Bonds represent a key source of financial capital for various entities. There are four primary types of bonds reflecting the nature of the issuers. These are:

Corporate bonds issued by private firms or corporations.

Treasury bonds, also referred to as T-bonds, issued by the federal government through the U.S. Department of the Treasury.

Municipal bonds issued by cities, and state bonds by U.S. states.

Foreign bonds issued by foreign governments or international organizations.

Each type of bond differs with respect to the terms of the interest rate, the time until repayment (maturity), risk, and expected return. Bonds typically specify the amount to be borrowed, the interest rate at issuance, and the schedule for repayment. They serve as a significant tool for raising capital.

Answer 2

Bond, Treasury and Risk are the correct words that can satisfy the statements given.

Step-by-step explanation:

A(n) bond is a long-term agreement under which a borrower allows to make installments of interest as well as principal on particular dates as we know this is a definition of bound. So the word bond satisfies the statement requirement.

There are four main types reflecting who the issuers are: treasury, corporate, municipal, and foreign. Each type differs with respect to risk and expected return. All have some common characteristics even though they may have different contractual features. Here in the second statement, the word treasury satisfies the statement requirement as we know that (Treasury Securities. Bonds, notes as well as bills announced by the United Statement government are frequently known as “Treasuries” and are the maximum-quality securities accessible.)

Correct words complete the sentences and we can understand the statements easily.