Which of the following most accurately describes what a bond is?

A.
A bond is a government loan made to an individual investor with the expectation that it will be paid back with interest---Un bono es un préstamo gubernamental otorgado a un inversor individual con la expectativa de que será devuelto con intereses.

B.
A bond is an investment in which a corporation lends an individual investor money with the expectation that it will be paid back with interest---Un bono es una inversión en la que una corporación le presta dinero a un inversor individual con la expectativa de que lo devolverá con intereses.

C.
A bond is a government loan made to a corporation with the expectation that it will be paid back with interest---Un bono es un préstamo gubernamental otorgado a una corporación con la expectativa de que será devuelto con intereses.

D.
A bond is an investment in which an investor lends money to a corporation or government with the expectation that it will be paid back with interest---Un bono es una inversión en la que un inversor presta dinero a una corporación o a un gobierno con la expectativa de que lo devolverá con intereses.

1 answer

The most accurate description of what a bond is would be:

D. A bond is an investment in which an investor lends money to a corporation or government with the expectation that it will be paid back with interest.

This definition encompasses both types of issuers (corporations and governments) and correctly identifies the relationship between the investor and the issuer.