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- DictionaryBond/bänd/
noun
- 1. a relationship between people or groups based on shared feelings, interests, or experiences: "there was a bond of understanding between them"
- 2. a connection between two surfaces or objects that have been joined together, especially by means of an adhesive substance, heat, or pressure: "there was no effective bond between the concrete and the steel"
verb
- 1. join or be joined securely to something else, especially by means of an adhesive substance, heat, or pressure: "press the material to bond the layers together"
- 2. join or be joined by a chemical bond: "neutral molecules bond to the central atom"
What are bonds? A bond is a debt security, like an IOU. Borrowers issue bonds to raise money from investors willing to lend them money for a certain amount of time. When you buy a bond, you are lending to the issuer, which may be a government, municipality, or corporation.
Jan 9, 2024 · A bond is a loan. When you purchase a bond, you provide a loan to an issuer, like a government, municipality, or corporation. In return, the issuer promises to pay back the money it borrowed, with interest. The interest will be received on a predetermined schedule (usually semiannually, but sometimes annually or quarterly). How do bonds work?
Feb 15, 2024 · A bond is a loan to a government, agency, or company that is repaid with interest. Bonds complement stocks and other more aggressive investments in a portfolio. The IOUs of the financial world, bonds represent a government's, agency's, or company's promise to repay what it borrows—plus interest.
From Longman Business Dictionary bond /bɒndbɑːnd/ noun [ countable] 1 an amount of money borrowed by a government or an organization. The government or organization produces a document promising that it will pay back the money that it has borrowed, usually with interest.
Definition Of A Bond. A bond is a debt instrument. The party borrowing the money issues an IOU in the form of a bond. It is a stated guarantee to return the money invested at a specified date in...
Key takeaways. Bonds are obligations of debt issues by institutions such as governments (national and local), and companies to raise funds. The key examples of bond types include government and municipal bonds, corporate bonds, high-yield (or junk) bonds, and mortgage-backed bonds.
A security issued by a corporation or public body and usually carrying a fixed rate of interest and a set date, called the bond's maturity, for redemption of the principal. Like a stock, a bond is a type of investment, but unlike a stock, a bond has a definite, but not necessarily fixed, yield.
