A Bond is a document with which one party promises to pay another within a specified amount of time. The term "demand" means that the principal plus any interest is due on demand by the bondholder rather than on a specific date. Bonds are used for many things, including borrowing money or guaranteeing payment of money. A bond can be given to secure performance of particular obligations, including the payment of money, or for purposes of indemnification. The validity of a "private" bond, payable upon demand, is determined by the same principles applicable to contracts generally. The purpose of the bond must not be contrary to public policy; it must be supported by a valuable consideration; and there must be a clear designation of the obligor and the obligee. A bond procured through fraud or duress may be unenforceable, but mistake on the part of the obligor as to the contents of a bond, or its legal effect, is not a defense to enforcement of the bond.
Bond prices generally move in the opposite direction of interest rates. A sustained increase in demand should support munibond performance over the coming months.Issuer fundamentals remain stable. Supply and demand drive opportunities, and there is currently a shortage of municipal bond supply. Another risk is the increased supply of coupon bonds with less demand at current prices. This table describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund. Risk, and supply of and demand for bonds. Bond prices generally move in the opposite direction of interest rates. The Ben Franklin effect is a psychological phenomenon in which people like someone more after doing a favor for them.