What Are Bonds?

What Are Bonds: Bond is basically a negotiable debt investment certificate which ensures a fixed income for a defined period of time; it is generally issued by a company or the government agency.

An investor for bonds who offers the money to issuer and in the return to that, the issuer promises to repay the amount which is equal to the bond value at a fixed interest rate (at a specified maturity date) over the life of the bond. However, the interest of this bond is usually paid (semi-annually) every six months.

Well, bonds are basically used by the companies and the foreign governments to fund the multiple projects as well as the activities.

Related Articles

Leave a Reply

Back to top button