What are Bonds?

Answer 1

007s

Answer 2

A debt investment with which the investor loans money to an entity (company or government) that borrows the funds for a defined period of time at a specified interest rate.
The indebted entity issues investors a certificate, or bond, that states the interest rate (coupon rate) that will be paid and when the loaned funds are to be returned (maturity date). Interest on bonds is usually paid every six months (semiannually). The main types of bonds are the corporate bond, the municipal bond, the Treasury bond, the Treasury note, the Treasury bill and the zero-coupon bond.

My advice:
The higher rate of return the bond offers, the more risky the investment. There have been instances of companies failing to pay back the bond (default), so, to entice investors, most corporate bonds will offer a higher return than a government bond. It is important for investors to research a bond just as they would a stock or mutual fund. The bond rating will help in deciphering the default risk.

Answer 3

A bond is really just a loan, but in the form of a security, although terminology used is rather different. The borrower of the money is called an issuer, the bond holder is the lender, and the interest is known as coupon. Bonds enable the issuer to finance long-term investments with external funds.

Bonds and shares (equities) are both securities, but the difference is that shareholders own a part of the issuing company (have an equity stake), whereas bond holders are in essence lenders to the issuer. Also bonds usually have a defined term, or maturity, after which the bond is redeemed whereas stocks may be outstanding indefinitely. An exception though, is a perpetual bond, which is a perpetuity, a bond with no maturity.

Answer 4

A debt instrument issued for a period of more than one year with the purpose of raising capital by borrowing. The Federal government, states, cities, corporations, and many other types of institutions sell bonds. Generally, a bond is a promise to repay the principal along with interest (coupons) on a specified date (maturity). Some bonds do not pay interest, but all bonds require a repayment of principal. When an investor buys a bond, he/she becomes a creditor of the issuer. However, the buyer does not gain any kind of ownership rights to the issuer, unlike in the case of equities. On the hand, a bond holder has a greater claim on an issuer's income than a shareholder in the case of financial distress (this is true for all creditors). Bonds are often divided into different categories based on tax status, credit quality, issuer type, maturity and secured/unsecured (and there are several other ways to classify bonds as well). U.S. Treasury bonds are generally considered the safest unsecured bonds, since the possibility of the Treasury defaulting on payments is almost zero. The yield from a bond is made up of three components: coupon interest, capital gains and interest on interest (if a bond pays no coupon interest, the only yield will be capital gains). A bond might be sold at above or below par (the amount paid out at maturity), but the market price will approach par value as the bond approaches maturity. A riskier bond has to provide a higher payout to compensate for that additional risk. Some bonds are tax-exempt, and these are typically issued by municipal, county or state governments, whose interest payments are not subject to federal income tax, and sometimes also state or local income tax.

Answer 5

If your talking law then it is a written and sealed obligation, especially one requiring payment of a stipulated amount of money on or before a given day.
2. A sum of money paid as bail or surety.
3. A bail bondsman.
A certificate of debt issued by a government or corporation guaranteeing payment of the original investment plus interest by a specified future date.
The condition of taxable goods being stored in a warehouse until the taxes or duties owed on them are paid.
An insurance contract in which an agency guarantees payment to an employer in the event of unforeseen financial loss through the actions of an employee. Bond paper.

Lets say you went to jail and your bond is 1,000. The bail bonds people pay a percentage of the bond and someone else (like your mother) puts up the rest of the bond. You then have to call the lender (bail bonds people) once a week on a set day (like Wendsday.) If you do not show or skip town then your mother or who ever signed for your bail would be the one responsible and will be the one getting in trouble with the law. (At least that is how it worked when my bro went to jail.)

http://en.wikipedia.org/wiki/Bail_Bonds

In houses they are a systematically overlapping or alternating arrangement of bricks or stones in a wall, designed to increase strength and stability.

Answer 6

A bond is essentially a loan. The difference between a bond and a loan is that a bond can be traded while a loan cannot be traded strictly speaking.

Answer 7

james bond

Answer 8

forget the silly yanks

http://dictionary.reference.com/browse/bonds

Answer 9

don't forget Roger Moore, Sean Connery, and Timothy Dalton.

Answer 10

and David Niven in the spoof..