Changes

A '''bond''' is a kind of investment. It is essentially a promise or "IOU" by a borrower to pay fixed amounts to the holder of the bond on specified dates.

A '''bond''' is a kind of investment. It is essentially a promise or "IOU" by a borrower to pay fixed amounts to the holder of the bond on specified dates.

Often, bonds are issued by corporations or governments. The issuer offers them for sale at a specified amount (the''face value,''), often $1000. The issuer promises to pay that amount back on a specific date (the ''maturity''), and to make regular, specified interest payments—often four times a year (''quarterly'')—in the meantime.

Often, bonds are issued by corporations or governments. The issuer offers them for sale at a specified amount (the ''face value,'') often $1000. The issuer promises to pay that amount back on a specific date (the ''maturity''), and to make regular, specified interest payments—often four times a year (''quarterly'')—in the meantime.

For example, someone who buys a $1000 bond in December, 2007, with a five year maturity and a "coupon interest" of 6% per year:

For example, someone who buys a $1000 bond in December, 2007, with a five year maturity and a "coupon interest" of 6% per year: