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Bonds


Bonds

A bond is a type of financial coupon in which the lender owes the owner of that coupon a debt and must pay interest on said debt.

About Bonds

In the finance world, a bond is a type of coupon, which a lender issues to someone in recognition of the debt printed on the coupon. The lender must also pay the owner interest on the coupon amount too.

The bond is, in essence, a loan - where the borrower is actually the issuer of the coupon.

Bonds are similar to stocks in the sense that they're both securities, but bonds will earn equity, where as stocks won't.

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