Economics Stock Market Questions
A bond is a fixed income investment where an investor loans money to a government or corporation for a specific period of time at a predetermined interest rate. It is essentially a debt instrument that represents a loan agreement between the issuer of the bond and the bondholder. The issuer promises to repay the principal amount of the bond at maturity, along with periodic interest payments to the bondholder. Bonds are commonly used by governments and corporations to raise capital for various purposes.