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A bondholder is similar to a bank in that both are lenders who provide capital to borrowers in exchange for interest payments. Just as a bank loans money to individuals or businesses and earns interest on those loans, a bondholder purchases bonds, which are essentially loans to corporations or governments, receiving periodic interest payments (coupons) until the bond matures. Both entities also face risks related to borrower default and interest rate fluctuations, impacting their returns. Ultimately, they play crucial roles in facilitating financing in the economy.
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Why is a bondholder similar to a bank?
Bondholders loan money to bond issuers just as banks loan money to customers.
Why a bondholder is similar to a bank?
Apex :) Bondholders loan money to bond issuers just as banks loan money to customers
Best explains why a bondholder is similar to a bank?
Bondholders loan money to bond issuers just as banks loan money to customers.
What best explains why a bondholder is similar to a bank?
Bondholders loan money to bond issuers just as banks loan money to customers.
What is the principal difference between a bondholder and a stockholder?
The shareholder has an ownership interest and the bondholder is a lender.
Why is a bondholder similar to a bank?
Bondholders loan money to bond issuers just as banks loan money to customers.
Why a bondholder is similar to a bank?
Apex :) Bondholders loan money to bond issuers just as banks loan money to customers
Best explains why a bondholder is similar to a bank?
Bondholders loan money to bond issuers just as banks loan money to customers.
What best explains why a bondholder is similar to a bank?
Bondholders loan money to bond issuers just as banks loan money to customers.
What is the principal difference between a bondholder and a stockholder?
The shareholder has an ownership interest and the bondholder is a lender.
What is the difference between a bondholder and a shareholder?
A bondholder is a creditor to a company whereas a shareholder is a owner of a company.
Just like CDs bonds reach at which point the amount paid for the bond is returned to the bondholder?
Bonds reach maturity when the principal amount paid for the bond is returned to the bondholder. At maturity, the bond issuer repays the face value of the bond to the bondholder, along with any remaining interest payments.
The amount a bondholder is repaid when a bond matures?
Type Face value
What does a bond represent?
A bond represents a company or organizations debt to you the bondholder.
What is the name of the payments that a bondholder receives for purchasing a bond?
Apex- Coupon
Which of these is an element of a bond Business?
An element of bond business is a face value similar to the principal amount of loan.
What is the name of interest payments that a bondholder receives for purchasing a bond?
Apex- Coupon
