Username: Andrew Rating: Asked to: Talitha Taslim Date Created: 25 May 2018 |
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Category | 28 |
Tag | Financial |
Question | What is a 'Bond'? |
Hello Andrew, A bond is a fixed income investment in which an investor loans money to an entity (typically corporate or governmental) which borrows the funds for a defined period of time at a variable or fixed interest rate. Bonds are used by companies, municipalities, states and sovereign governments to raise money and finance a variety of projects and activities. Owners of bonds are debtholders, or creditors, of the issuer. |
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