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A term bond is a type of bond that has a specific maturity date, at which point the principal amount is repaid to the bondholder. Unlike callable bonds, term bonds cannot be redeemed before their maturity date, providing a predictable income stream through fixed interest payments. These bonds are commonly issued by governments and corporations to raise capital for various purposes. Investors often choose term bonds for their stability and clarity regarding cash flow timing.

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2w ago

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