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What is a bond?
Firms raises the capital that they need for short and long term financial needs by borrowingmoney through bonds, securities, shares, etc.Bond is a financial contract issued by the borrower in which the amount of loan is mentioned withthe amount of interest to be paid with principal amount, in the specified time.
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everyone. Today we're solving problem number 12 from chapter 17 of the textbook. This is basically asking us from the definition. It is asking us where the definition of what a bond it's. So I'm just gonna be about this chapter. Um, sorry, this paragraph on top, you're 17. It says another source of financial popular is a bomb. A bond is a financial contract. A borrower agrees to repay the amount that is borrowed and also an interest rate over a period of time in the future. A corporate bond. They go through how issued by firms. But bonds are also issued by various levels of government. Um, so you can get corporate bonds, miss full bonds or Treasury box, those three kinds of bombs? Essentially. So just to reiterate a bond is a financial contract through which a borrower like corporation, a city or state, or the federal government, which is where you get corporate, municipal and treasury bonds. So those kinds agrees. So those three, um corporation, a city or state, or the federal government agrees to repay the amount that that it borrowed and also a rate of interest over a period of time in the future. So there you have it. If you guys enjoying my video explanation of what a bond is pleased that the light, but next to it I hope you all have a nice day. And thank you for watching.
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