/*! This file is auto-generated */ .wp-block-button__link{color:#fff;background-color:#32373c;border-radius:9999px;box-shadow:none;text-decoration:none;padding:calc(.667em + 2px) calc(1.333em + 2px);font-size:1.125em}.wp-block-file__button{background:#32373c;color:#fff;text-decoration:none} Q 12. What is a bond?... [FREE SOLUTION] | 91影视

91影视

Log out

Learning Materials

Features

Discover

Chapter 17: Q 12. (page 426)

What is a bond?

Short Answer

Expert verified

A financial instrument that constitutes a loan made by an investor to a debtor.

Step by step solution

01

Step 1. 

Bonds are of various types like zero interest rate bonds, perpetual bonds, inflation bonds, etc.

02

Step 2.

A bond is a financial instrument that constitutes a loan made by an investor to a debtor.

Bonds are used by firms or companies or municipalities etc. to finance projects. Owners of bonds are the creditors basically.

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Over 30 million students worldwide already upgrade their learning with 91影视!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

Why are banks more willing to lend to well-

established firms?

What is the total amount of interest from a $5,000 loan after three years with a simple interest rate of 6%?

Explain why a financial investor in stocks cannot

earn high capital gains simply by buying companies with a demonstrated record of high profits.

Why can firms not just use their own profits for

financial capital, with no need for outside investors?

What are some reasons why the investment

strategy of a 30-year-old might differ from the investment strategy of a 65-year-old?
See all solutions

Recommended explanations on Economics Textbooks

Taxation Economics

Read Explanation
View all explanations

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.