A bond is its issuer's written promise to pay an amount equaling the _____ value of the bond with interest.

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19-08-2022
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A bond is its issuer's written promise to pay an amount equaling the _____ value of the bond with interest.

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Tutorconsortium349 Tutorconsortium349 · Answer 1 · 2022-08-28T17:06:02+02:00

A bond is its issuer's written promise to pay an amount equaling the par value of the bond with interest.

What Is a Bond?

Bonds are fixed-income securities that reflect loans from investors to borrowers (typically corporate or governmental).

A bond can be compared to an agreement outlining the terms of the loan and the associated payments between the lender and borrower.

Companies, municipalities, states, and sovereign governments utilize bonds to finance operations and initiatives.

Bondholders are the issuer's debtors or creditors.

Bond specifications typically contain the terms for variable or fixed interest payments made by the borrower, as well as the end date by which the principle of the loan is expected to be paid to the bond owner.

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