A bond is__________.
A. a debt instrument, that is, the issuer has taken out a loan.
B. an equity instrument, that is, the buyer has purchased ownership in the issuer's firm.
C. the same thing as a stock.
D. a short-term loan from the government.

Respuesta :

Answer:

The correct answer is A.

Explanation:

Bond is the instrument which is a fixed income and it represents a loan that is made by an investor to the borrower It is an IOU among the borrower and the lender which involves the payment as well as the loans details. It is used by the companies, states, sovereign governments and municipalities for financing the operations of the business.

Therefore, it is a instrument of debt, which the issuer has taken a loan.