Bonds

Bonds

A bond is a debt instrument.

Bonds are issued by corporations or governments to raise money. A bond is like a fixed deposit in a bank where the issuing entity promises to pay back the principal and the interest. Someone who buys a bond basically is giving a loan money to the issuer and would get interest on his money.

Some of the different types of bonds are

o Asset-Backed Securities
o Convertible Bonds
o Corporate bonds
o Eurobonds
o Government Bonds
o Inflation-Linked Bonds
o Municipal bonds
o U.S. Treasury bonds
o Zero Coupon Bonds