Economics · Economy

Which of the following best describes a financial bond?

Verified Solution4 OptionsUpdated: October 2026👁️1 View

1An insurance policy that covers corporate property damages
2A short-term derivative contract traded on an agricultural exchange
3A debt instrument where the issuer promises to pay periodic interest and return the principal at maturity✓
4An equity share that represents ownership in a corporation

Correct answer

A debt instrument where the issuer promises to pay periodic interest and return the principal at maturity

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