bond - Bonds are defined as a debt investment in which an...

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Bonds are defined as a debt investment in which an investor loans money to an entity ,typically corporate or governmental which borrows the funds for a defined period of time at a variable or fixed interest rate. Bonds are used by companies, states and sovereign governments to raise money and finance a different types of projects and activities. Owners of bonds are debtholders, or creditors of the issuer.Investors choose to invest in bonds because they provide interest income and an opportunity for capital gains. Due to the certainly of interest income from bonds,many investors wanted to see a higher safety in bond investments than in stock investment because stocks pay investors dividends which are
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