Question

What is a bond



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Answer 1

Answer:

In finance, a bond is an instrument of indebtedness of the bond issuer to the holders. The most common types of bonds include municipal bonds and corporate bonds. Bonds can be in mutual funds or can be in private investing where a person would give a loan to a company or the government.

Answer 2

A bond is a contract between two companies. Companies or governments issue bonds because they need to borrow large amounts of money.

Need to know

Bonds have a maturity date. This means that at some point, the bond issuer has to pay back the money to the investors.