A bond is debt instrument which guarantees to repay the principal of the loan plus interest to the bondholder. Bonds are considered to be long-term debt and have to be paid back on their maturity date. Usually bonds have fixed interest rate, which is paid to the bondholder during the term of the bond.
Bonds can be issued by both governments and corporations. When you buy bonds you are in effect lending money to the bond issuer, who agrees to repay the loan in the future and to pay interest during the life of the bond.
Added by: Kajol,Name of Sweets
Bonds can be issued by both governments and corporations. When you buy bonds you are in effect lending money to the bond issuer, who agrees to repay the loan in the future and to pay interest during the life of the bond.
Added by: Kajol,Name of Sweets
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