What are bonds ?

Question

What are bonds ?

Accepted Answer

Bonds are debt securities issued by companies or governments to raise capital, with a promise to repay the principal amount along with interest at a specified future date.

Bonds are essentially loans that investors provide to the issuer in exchange for periodic interest payments and the return of the bond's face value upon maturity.
They are typically used by companies and governments to raise funds for various projects or operations.
Bonds have a fixed maturity date, at which point the issuer repays the principal amount to the bondholder.
There are different types of bonds such as corporate bonds, municipal bonds, and government bonds.
Bond prices are influenced by interest rates, credit ratings, and market conditions.

What are bonds ?

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