What role do investors play when acquiring bonds?

Investors play the role of lenders to the issuers when acquiring bonds. When an individual or institutional investor purchases a bond, they are essentially providing a loan to the issuer, which could be a corporation or government entity. In exchange for this loan, the issuer agrees to pay back the principal amount on a specified maturity date and make periodic interest payments, known as coupon payments, during the life of the bond.

This relationship establishes a creditor-debtor dynamic, where the investor expects to receive not only their initial investment back but also compensation in the form of interest, making it a distinct financial transaction compared to equity investments where shareholders own a part of the company.

The other options do not accurately reflect the role of bond investors. Shareholders are those who invest in company stock, and while investment advisors do provide guidance on investments, they don't directly participate in the bond transaction itself as investors. Guarantors are third-party entities that promise to fulfill the debt obligations if the issuer fails, which is separate from the role of bondholders who are direct lenders.