Question

What is a bond?
a.
A small portion of ownership in a company.
b.
A payout distributed by corporations.
c.
A form of promissory note with the bondholder as creditor.
d.
The interest paid on a small loan.

Answer 1

c. A bond is a form of promissory note (a debt instrument) in which the bondholder is a creditor and the issuer promises to pay interest and return principal.