what is a bond? describe the difference between a stock and a bond. choose the c
ID: 3135956 • Letter: W
Question
what is a bond? describe the difference between a stock and a bond.
choose the correct answer below.
A. Bonds are commitment from a company to pay the price an investor pays for the bond at the time it was purchased, called the face value, along with interest payments depandent on the performance of the company. Bonds are lower risk than stocks, but also have lower returns and a share of ownership in a company.
B. Bonds are commitment from a company to pay the price an investor pays for the bond at the time it was purchased, called the face value, along with interest payments at a given rate. Bonds are higher risk than stocks, but also have higher returns and are share of ownership in a company.
C. Bonds are commitment from a company to pay the price an investor pays for the bond at the time it was purchased, called the face value, along with interest payments depandent on the performance of the company. Bonds are higher risk than stocks, but also have higher returns and are not a share of ownership in a company.
D. Bonds are commitment from a company to pay the price an investor pays for the bond at the time it was purchased, called the face value, along with interest payments at a given rate. Bonds are lower risk than stocks, but also have lower returns and are not a share of ownership in a company.
Explanation / Answer
Answer is D.
Difference between stock and bond is -
Bonds are commitment from a company to pay the price an investor pays for the bond at the time it was purchased, called the face value, along with interest payments at a given rate. Bonds are lower risk than stocks, but also have lower returns and are not a share of ownership in a company.
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