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_____ are financial instruments, traded on established exchanges, that specify future payments a company promises to make in exchange for receiving a sum of money now.Bonds

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tutorconsortium127

Bonds are financial instruments, traded on established exchanges, that specify future payments a company promises to make in exchange for receiving a sum of money now

What is meant by Bonds?

  • Governments and businesses both issue bonds as a means of raising capital. By purchasing a bond, you are effectively lending the issuer money.
  • In exchange, they pledge to repay you the face amount of the loan on a particular date and to pay you interest on the bond at regular intervals, typically twice a year.
  • A bond can be thought of as an investor's loan to a borrower, such as a business or the government. While the investor earns interest on their investment, the borrower utilizes the money to finance its activities.
  • Over time, a bond's market value may fluctuate. The first is that, overall, bonds are a lower risk asset type than equities.

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tutorconsortium115

Bonds are financial instruments, traded on established exchanges, that specify future payments a company promises to make in exchange for receiving a sum of money now.

What is a bond ?

  • Governments and businesses both issue bonds as a means of raising capital. By purchasing a bond, you are effectively lending the issuer money. In exchange, they pledge to repay you the face amount of the loan on a particular date and to pay you interest on the bond at regular intervals, typically twice a year.
  • A bond can be thought of as an investor's loan to a borrower, such as a business or the government. While the investor earns interest on their investment, the borrower utilizes the money to finance its activities. Over time, a bond's market value may fluctuate.

To learn more about Bonds refer to:

https://brainly.com/question/25965295

#SPJ4

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