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A bond is a fixed income instrument that represents a loan made by an investor to a borrower (typically corporate or governmental). A bond could be thought of as an I.O.U. between the lender and borrower that includes the details of the loan and its payments.
U.S. Treasury Bonds. Savings Bonds. Agency Bonds. Municipal Bonds. Corporate Bonds. Types of Bond-based Securities.
A bond is a fixed income instrument that represents a loan made by an investor to a borrower (typically corporate or governmental).Bonds are used by companies, municipalities, states, and sovereign governments to finance projects and operations. Owners of bonds are debtholders, or creditors, of the issuer.
A bond is a contract between two companies. Companies or governments issue bonds because they need to borrow large amounts of money.Bonds have a maturity date. This means that at some point, the bond issuer has to pay back the money to the investors.
Bonds are issued by governments and corporations when they want to raise money. By buying a bond, you're giving the issuer a loan, and they agree to pay you back the face value of the loan on a specific date, and to pay you periodic interestopens a layerlayer closed payments along the way, usually twice a year.