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

Bonds are debt securities issued by companies or governments. They require that the borrower repay the principal and interest over a set 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 bonds totaling $7 billion in order to raise money for corporate purposes like share repurchases or dividend payments. It is a great example of companies tapping into the bond market when they require additional capital. Investors also have an opportunity to make returns with fixed-income instruments. 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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