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''' has two similar meanings:

 

* in financial terms, it is a kind of investment.  

 

A '''bond''' 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.

[[Category:Economics]]

[[Category:Economics]]