Economics · Financial Markets
Which of the following characteristics best defines a Bond as a financial instrument?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1It is classified strictly as a high-risk derivative contract.
- 2It provides only a variable, dividend-based income stream.
- 3It is a debt instrument representing a loan made by an investor to a borrower.✓
- 4It represents ownership equity in a company.
Correct answer
It is a debt instrument representing a loan made by an investor to a borrower.
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