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What is a Bond? Comments

  • By Jocelyn Black Hodes, DailyWorth's Resident Financial Advisor
  • June 21, 2013

A bond is a debt investment in which an investor loans money to a corporation, government or municipality that borrows the funds for a defined period of time at a fixed interest rate. Bonds are used to finance a variety of projects and activities. Bonds are commonly referred to as fixed-income securities and are one of the three main asset classes, along with stocks and cash equivalents.

 

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