Question

A bond represents a contract of indebtedness issued by a corporation that promises payment of a principal amount plus interest at a specified future date. false true

Answer 1

The answer to this question is “TRUE”. A bond is just like a loan. However, the main difference is that with loans, the public is borrowing money from a bank or lending source. With Bonds, the company borrows money from the public. Both have interest rates and payment due based on the terms of agreement.