____are debt certificates that are purchased by an investor.
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Bonds are debt certificates that are purchased by an investor.
What is Bond?
- Bonds are a type of debt instrument that pays the bearer interest over a set length of time. When a bond matures, the bondholder receives the original amount invested, plus interest, which is paid before the bond matures.
- The primary purpose of government bonds is to fund government spending and commitments, making them safe.
- As a result, bonds are debt certificates that an investor purchases.
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