2007-02-16 05:21:43 · 4 answers · asked by LKJ 2 in Business & Finance ➔ Personal Finance
There are different types of bonds, but if you're not talking about a savings bond you're referring to a specified sum that is "held in trust" if you will as a guarantee. For example, let's say your friend gets arrested for assault. He goes to court, and the judge sets bail at $10,000.00 cash or bond. Your friend goes to a bail bondsman and is able to convince him to put up a bond. Your friend pays $1,000.00 and the bondsman puts up the $10,000.00 bond with the court. That bond is a guarantee that your friend will show up for his trial, so if your friend skips town that bail bondsman could be out $9,000.00. That's why bail bondsmen require the people they bond out to call EVERY DAY and some of them have the legal authority to apprehend bond-jumpers, like Duane Chapman, a.k.a., "Dog the Bounty Hunter." People who import goods into the U.S. are also required to put up a bond. That's the guarantee that the Federal Government will get their money if an importer doesn't pay duties AND it's also a guarantee that the importer will pay whatever fines and penalties are assessed if they violate Customs regulations. Make sense?
2007-02-16 05:33:00 · answer #1 · answered by sarge927 7 · 0⤊ 0⤋
http://www.bankrate.com/brm/news/dollardiva/20011005a.asp
You can get government bonds, bank nbonds etc...depending on how much your bond is..you can give as little as $25 to $50,000 and more...you get interest but the smaller the amount, the longer for you bond to mature. Its a good investment..get one and just forget about it...but don't really forget because when it matures you need to get it because you do lose something when you don't get it on time and also you receive a penalty for taking it out early as well....
2007-02-16 13:34:36 · answer #2 · answered by Matrixgyal 1 · 0⤊ 0⤋
A bond is basically an "IOU" from a corporation or government entity. In return for loaning them your money for a certain time period, you are entitled to a certain interest rate, along with full repayment.
2007-02-16 13:29:46 · answer #3 · answered by Anonymous · 0⤊ 0⤋
It's debt bought from the public rather than the bank or other loan company. This is done because a lot of money is needed and or because they can get a better rate than through a loan company.
2007-02-16 13:33:39 · answer #4 · answered by gregory_dittman 7 · 0⤊ 0⤋