Respuesta :
I believe the answer is: B. The issuer will pay you back, plus interest
When a company issue a bond, that company is basically sell a promissory note that acted as a liability. This bond would specifically state the nominal value, the interest rates, and the due date when the buyer of the bond would receive the payment plus interest form the issuer.
When a company issue a bond, that company is basically sell a promissory note that acted as a liability. This bond would specifically state the nominal value, the interest rates, and the due date when the buyer of the bond would receive the payment plus interest form the issuer.
The issuer will pay you back, plus interest.
Further Explanation:
When a person buys a bond, it means he or she is lending his or her money to the company or the government who is the bond issuer for a certain period. The term can be as long as 30 years. The issuer pays you interest in return. On the maturity date that is the date when the bond becomes due the issuer pay back you the face value of that bond in full. Bond is a type of instrument of indebtedness. There are two types of bonds: municipal bonds and corporate bonds. The bond is a type of debt security which issuer owes to the holders of a debt and is obliged to pay the interest. Interest is paid at the fixed interval. Sometimes the bond is negotiable. Bonds and the stocks are both securities. Bonds are issued by the public authorities. The process of issuing bonds is by underwriting. The government bonds are issued by auction. The price is determined by the market. The bonds are sold directly to the buyers and are not tradable in the market. On the bond, the maturity date is mentioned. The coupon is that interest rate which the issuer pays to the holder. The yield is the return received after investing in the bond. The credit quality is a probability that the bondholders receive the money as promised.
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Answer Details:
Grade: High School
Subject: Social Science
Keywords: Debt security, fixed interval, negotiable, underwriting, auction, coupon, yield.
