Answered: What is a bond, James Bond? how is it…

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter15: The Federal Reserve System And Monetary Policy

Section: Chapter Questions

Problem 13AA

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What is a bond, James Bond? how is it related to personal checks.

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Bonds are one of the important income yielding financial assets in the economy and not James Bond which is a film character. There are different types of bonds in the economy which provides a fixed level of income to the bondholder. The bond is issued by the firm or company that borrows a sum of funds from the people who are known as the creditors. The firm or company that provided the bond states that it will repay the amount in a period defined in the bonds and up to that period the bond issuer will pay the predetermined interest rate to the bondholder in the economy.

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