Asked by Mason Rogers on Apr 27, 2024

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A bond is considered a:​

A) ​real asset
B) ​fianncial asset
C) ​debt instrument
D) ​Both B & C

Debt Instrument

A paper or electronic obligation that enables the issuing party to raise funds by promising to repay a lender in accordance with terms of a contract.

Bond

A fixed income investment in which an investor loans money to an entity (corporate or governmental) which borrows the funds for a defined period at a variable or fixed interest rate.

Financial Asset

An intangible asset that derives value from a contractual right or ownership claim, such as stocks, bonds, or bank deposits.

  • Define bonds and understand their role as financial assets and debt instruments.
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Zachary HarrillApr 29, 2024
Final Answer :
D
Explanation :
A bond is a financial asset that represents a debt instrument. It is issued by a borrower (usually a corporation or government) and purchased by an investor (lender) who is paid periodic interest payments and the return of the principal amount at maturity. Therefore, both options B and C are correct.