Quick Definition

A bond is a fixed income instrument that represents a loan made by an investor to a borrower, typically corporate or governmental.

Examples

• 1A government issuing bonds to fund infrastructure projects like highways and schools.
• 2A corporation issuing bonds to raise money for new technological developments.
• 3Investors buying bonds to diversify their investment portfolios and reduce risk.
• 4Municipal bonds issued by local governments to fund public services such as water treatment facilities and public parks.

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