Bonds

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Bonds

A bond is in the "fixed income" category of assets. It has a measurable and predictable return for investors and borrowers. It is most commonly used by companies, soverign governments, states, and municipalities (meaning, they issue bonds) The transaction of agreement between the investor and borrower is a fixed loan made by the investor. The bond transaction is accompanied with details of the contract which generally includes when the principal of the loan will be due.

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