asked 148k views
0 votes
A loan to a company or government that pays investors a fixed rate of truth over a specific timeframe is known as:

1. 401k
2. Tax shelter account
3. Stocks
or 4. Bonds

1 Answer

3 votes

Answer:

4. Bonds

Step-by-step explanation:

Bonds are debt instruments used by corporates and governments to raise capital. Bonds are long-term sources of capital for a business and government and also an investment option to investors.

When the government or corporate issues bonds, they promise to pay the principal amount when the bond matures. Maturity ranges from 5 to 30 years. The bond issuer also commits to pay interest on regular intervals until the bonds mature. The interest to be paid is based on the coupon rate or interest rate as specified by the bond.

answered
User Stuart Burrows
by
7.8k points
Welcome to Qamnty — a place to ask, share, and grow together. Join our community and get real answers from real people.

Categories