What is a bond?

Question

I really don’t understand and it’s getting embarrassing

In: 0

Answer 1

There’s different kinds of bonds. Some of bonds are financial instruments that are used to raise capital, such as lease revenue bonds. Other types of bonds are a promise to perform on behalf of someone else, for example: a performance bond is a promise to complete work under a contract, a payment bond is a promise to pay subcontractors if the general contractor doesn’t, and employment bonds protect against losses causes by an employee.