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Financial Dictionary

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Investment Word

Bond

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A Bond is a loan to one entity such as a government or a company to an individual. In exchange for the loan the entity pays an interest rate. Bonds are valued by how much interest they pay and how stable the issuer is. The US government is one of the most stable issuers of bonds known today.

More Information on Bonds:
Municipal Bonds FAQ | Bond Ratings Table

Bond - definition

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