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.
The demand for money is the relationship between the quantity of money people want to hold and the factors that determine that quantity. Keynesian economics is a macroeconomic theory of total spending in the economy and its effects on output, employment, and inflation.The price of money is the nominal interest rate, the quantity is how much money people hold, supply is the money supply, and demand is the demand for money. A primer on the basics and complexities of the global bond market. The yield curve for government bonds is an important indicator in financial markets. There's going to be an inverse relationship between the interest rate and bond prices if interest rates fall bond prices are going to increase.