What is a bond? What are different types of bonds?

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Accepted Answer

A bond is a debt security that represents a loan made by an investor to a borrower.

Bonds are issued by governments, municipalities, and corporations.
They are used to raise capital and finance projects.
Different types of bonds include government bonds, corporate bonds, municipal bonds, and convertible bonds.
Government bonds are issued by national governments and are considered low-risk.
Corporate bonds are issued by companies to raise capital and offer higher yields.
Municipal bonds are issued by local governments to finance public projects.
Convertible bonds can be converted into a predetermined number of shares of the issuing company's stock.

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