What is a Bond?

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.


See Also:

Is Your Debt Ratio Healthy?

Top 8 Mistakes Investors Make

Ask An Advisor: Am I Invested in Ethical Companies?

Ask An Advisor:Is it Better to be Paid in Shares or Cash?

Bonds vs. Bond Funds: What’s the Diff?

Protect Your Cash–In a Bond Fund

Before You Bet on High-Yield Bonds, Read This

Can You Protect Your Portfolio from Inflation?


Join the Discussion