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How do bond works?

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Anonymous

15y ago
Updated: 9/17/2019

A bond is essentially a type of loan. However, in this case, it is you the that loans money to an organization by buying their bond. The corporation then pays interest to you on a predetermined rate and repays your money in full at the end of the bond term. Bonds are less of a volatile investment than stocks.

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Wiki User

14y ago

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