Glossary Term

Bond

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Bonds are debt-based securities, essentially allowing a borrower to raise money from a lender in return for an interest rate payment throughout the duration of the bond, at which point it ‘matures’ and must be settled by the borrower. Bonds are issued by governments and corporations seeking to raise money. They are considered a fixed-income security as holders are paid a fixed interest rate, or coupon, throughout the duration of the bond.

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