Fixed Income

Bond

Definition

What is Bond?

A debt security through which an investor lends money to an issuer in return for promised payments.

Example in practice

An investor buys a five-year bond that pays interest every six months and repays principal at maturity.

Keep learning

The government, company, or organisation that creates and sells a security.

The principal amount stated on a bond and usually repaid at maturity.

The stated value of a bond or share, often used as the amount repaid at bond maturity.

A short-term government debt instrument usually issued at a discount and repaid at face value.

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