What is a 'bond'?

Answer 1

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"A Bond is simply an 'IOU' in which an investor agrees to loan money to a company or government in exchange for a predetermined interest rate."
If a business wants to expand, one of its options is to borrow money from individual investors. The company issues bonds at various interest rates and sells them to the public. Investors purchase them with the understanding that the company will pay back their original principal plus any interest that is due by a set date [this is called the "maturity"].

A bondholder is mailed a check from the company at set intervals [for example, every month] until the "loan" is paid off.

The interest a bondholder earns depends on the strength of the corporation. For example, a blue chip is more stable and has a lower risk of defaulting on its debt.

When companies such as Exxon Mobile, General Electric, etc., issue bonds, they may only pay 7% interest, while a much less stable start-up pays 10%. A general rule of thumb when investing in bonds is "the higher the interest rate, the riskier the bond."
Who can issue bonds? Governments, municipalities, a variety of institutions, and corporations. "Commercial Paper" is simply referring to bonds issued by companies.

There are many types of bonds, each having different features and characteristics. A few of the most notable are zero coupon and convertible.

Answer 2

Bond is a debt instrument with which an entity (company or government) borrows a debt from the market, for a certain period guaranteeting a certain return or interest.
A bond can be issued physically as a promissory note or a stock certificate or in a demat form.

Answer 3

Bond, James Bond

Answer 4

1) A certificate of debt (usually interest-bearing or discounted) that is issued by a government or corporation in order to raise money; the issuer is required to pay a fixed sum annually until maturity and then a fixed sum to repay the principal.

2) A certificate of a debt on which the issuer (usually a government or large corporation) pays a specific amount of interest for a specified length of time and promises to repay the loan to the holder at its maturity. Specific assets are pledged by the issuer as security for the bond.

Answer 5

It's a loan of sorts to the federal or state government. People invest in this because they are guarenteed their money back plus the interest they earn on the money.

Say you make a 10 year bond for $1,000 dollars with 10% interest.

Each year you get $100 by the end of the year.

At the end of the 10th year, you get the original money back plus the interest, adding up to $1,100

Answer 6

A Government debt issue.form which they issue to receive money to fund the countries needs.

Answer 7

a friendship