what is a bond?

Question

Bonds in a capital Market?

Answer 1

In a nutshell a bond is a loan. When you buy a bond from the issuer you are essentially loaning the borrower a certain amount (say $1000 for the sake of an example) which the issuer will be obligated to repay over time with interest. For example if you buy a ten year US govt treasury bond when interest rates are 5% then the US government will pay you $50 per year (50=5% of 1000) and then return you your initial $1000 investment in the tenth year. (Not all bonds work in precisely this manner, but this is the general idea.)
In this example the lender makes a profit of $500 (a 50% return on the initial investment.)

Bonds can be resold.

Bonds are considered safer than stocks, but tend to return less money over the long term.

Answer 2

A loan of money at a specific rate of interest, repayable at a specified time. The bond itself is the paper which acknowledges the debt and its terms. Many bonds used to come with coupons, which were redeemable for the accrued interest; when the interest payment was due, these could be cut off with scissors and deposited in a bank just like checks. Bonds are typically sold in denominations of $1000.

Answer 3

BOND in a capital market refers to a financial instrument for investment. It may or may not be trade able on the stock exchange. It is usually issued by Financial Institutions etc.

Answer 4

The act of applying Gold Bond powder to the bawls thereby creating a cooling and refreshing sensation for the boys, the intensity of which determined by the color of the dispensing bottle: gold for gentle cooling; green for a minty fresh sensation; and blue to experience a 1000 little gnomes with icy hands pounding the living daylights out of your boys. 2. Also used as a generic term for the application of any bawls powder to refresh the nether region