QuestionAugust 11, 2025

8. Bonds are an IOU from a business or a government promising to pay back the value of the bond plus: additional principal. premium payments. bond insurance payments. interest payments.

8. Bonds are an IOU from a business or a government promising to pay back the value of the bond plus: additional principal. premium payments. bond insurance payments. interest payments.
8. Bonds are an IOU from a business or a
government promising to pay back the value of the
bond plus:
additional principal.
premium payments.
bond insurance payments.
interest payments.

Solution
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Answer

interest payments. Explanation 1. Identify the nature of bonds Bonds are debt securities where the issuer promises to pay back the principal amount plus additional payments. 2. Determine the type of additional payment The additional payment made by the issuer is typically in the form of interest, which compensates the bondholder for lending their money.

Explanation

1. Identify the nature of bonds<br /> Bonds are debt securities where the issuer promises to pay back the principal amount plus additional payments.<br /><br />2. Determine the type of additional payment<br /> The additional payment made by the issuer is typically in the form of interest, which compensates the bondholder for lending their money.
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