what is bond?

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2007-03-27 18:15:40 · 2 answers · asked by sanoj 1 in Business & Finance ➔ Investing

bond@86-20/32 to yeild 9.95%, 8% coupon, 12 year to maturity

2007-03-27 18:19:05 · update #1

2 answers

A bond is an obligation of the borrower to repay the lender (bond buyer) a set interest rate over the term of the loan. Bonds have ratings of AAA all the way down to junk bonds.

You get a higher interest rate on the junk bonds because they are higher risk.
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2007-03-28 18:55:39 · answer #1 · answered by SWH 6 · 0⤊ 0⤋

A bond is a formal contract to repay borrowed money and interest on the borrowed money at regular future intervals. In other words, a bond is a written promise to repay the amout borrowed (principal) at a later date.

2007-03-27 18:26:58 · answer #2 · answered by Anonymous · 0⤊ 0⤋