Question

Which of the following financial assets is a promise by the issuer to pay the holder their original principal plus interest at some future date?
Legal Tender
Stock
Bonds
Money

Answer 1

Answer:

The correct answer is - Bonds.

Explanation:

Bonds are units of debt security that are issued by borrowers to the investors to raise money that they can repay with interest in a predefined or particular time.

Bonds can be issued by banks, governments, or corporations for lending a particular amount. Generally, bonds have 1000 dollar par value and the interest is decided by the issuer and also paid semi-annually.