In their simplest form, bonds are pure a) debt.
What are bonds?
- A bond may be a debt security, almost like an IOU.
- Borrowers issue bonds to boost money from investors willing to lend them money for a certain amount of time.
- When you buy a bond, you're lending to the issuer, which can be a government, municipality, or corporation.
- In return, the issuer promises to pay you a specified rate of interest during the lifetime of the bond and to repay the principal, also referred to as face value or par value of the bond, when it "matures," or comes due after a group period of time.
What sorts of bonds are there?
The main types of bonds are:
- Investment-grade
- Corporate bonds
- Municipal bonds
- High-yield bonds
To learn more about bonds: https://brainly.com/question/17405470
#SPJ4
