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: , ____________ (Business/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

Bond,treasury

Step-by-step explanation:

A bond refers to the contract between borrower and lender stipulating that the borrower must pay periodic interests and principal on specified dates .

The interest is also known as coupon payment has fixed rate usually quoted in the bond agreement which could be paid annually or semi-annually to te lenders.

Treasury refers to the bond issued by the national government such as the U.S government and carries a lower rate of return as the risk attached too is low ,hence lower risk brings about lower return since the government is not likely to default in discharging its obligations