Could investing in people's loans on prosper.com be considered a bond? IF not what kind of investment is it?

Bonds are written by big corporations and government who hold a lot of accountability for their actions.
To me, investing in in people's loans thru a web site seems like a formalized IOU. I wonder how much accountability these people have in case of default.

It's similar to a bond in that it is a debt obligation you expect to be repaid. However, bonds pay interest only for their term, then return the initial money borrowed. Prosper includes a portion of the principal in every payment. So that at the end of 36 months, the final payment should pay off the remaining principal.

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　　Business Investment 　　Business financing 　　Business Invest 　　Business Debt 　　Bond Investment 　　Angel Funds 　　Alternative Investment

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