Describe the characteristics of a bond and provide an example of a firm or government entity that has recently issued (sold) these securities.

4 responses oct 01 | Nursing homework help

The bond, which is issued by governments or corporations as a form of debt security, requires the borrower pay the principal in addition to interest within a certain time period. Because they offer a fixed rate of return, investors are able to be certain that the money is eventually repaid. This makes these securities attractive for individuals looking for stability over time.

Apple Inc. has announced its plans to issue $7Billion worth of bonds to help raise money for corporate purposes like share repurchases or dividend payments. As an example, this is how businesses can tap into bond markets to raise additional capital. It also gives investors the opportunity to receive fixed income returns. Bonds are still popular with firms because of their predictability, as well as the potential benefits that they provide to those who want to invest.

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