Advertisements
Advertisements
Question
Explain the following term/concept in detail:
Bond
Solution
A bond is a debt security. It is a formal contract to repay borrowed money with interest. A bond is a Loan. The holder of the bond is a lender to the institution. He is a creditor of the company. He gets a fixed rate of interest. All bonds have a maturity date and are paid in cash at a certain date in the future.
APPEARS IN
RELATED QUESTIONS
The holder of bond is ______ of the company.
State whether the following statement is true or false.
Bond holders are owners of the company.
Complete the sentence.
The bond holders are ______ of the company.
Answer in one sentence.
What is a bond?
Correct the underlined word and rewrite the following sentence.
Bond is a source of short term finance.
Answer in brief.
State the features of Bonds.
Justify the following statement.
Bond holder is creditor of the company.
