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In finance, a bond is a type of security under which the issuer owes the holder a debt, and is obliged – depending on the terms – to provide cash flow to the creditor (e.g. repay the principal (i.e. amount borrowed) of the bond at the maturity date and interest (called the coupon) over a specified amount of time. [1])
Bonds are an agreement between an investor and the bond issuer – a company, government, or government agency – to pay the investor a certain amount of interest over a specified time frame.
There are several benefits that come along with adding bonds to your investment portfolio, and experts suggest that they can help offset some of the risks taken on by more volatile investments ...
On the other hand, bonds and other short-term fixed income securities tend to be a better option for short-term goals because they are typically less volatile than stocks and can help generate ...
The term "fixed income" is also applied to a person's income that does not vary materially over time. This can include income derived from any combination of (1) fixed-income investments such as bonds and preferred stocks or (2) pensions that guarantee a fixed income (defined benefit as contrasted with defined contribution).
Some instruments have no fixed maturity date which continue indefinitely (unless repayment is agreed between the borrower and the lenders at some point) and may be known as "perpetual stocks". Some instruments have a range of possible maturity dates, and such stocks can usually be repaid at any time within that range, as chosen by the borrower.
Individual bonds are available for purchase, or you can choose to invest in bond mutual funds or exchange traded funds (ETFs). You can also acquire government bonds directly from the U.S. Treasury ...
In finance, a long position in a financial instrument means the holder of the position owns a positive amount of the instrument. The holder of the position has the expectation that the financial instrument will increase in value. [1] This is known as a bullish position. The term "long position" is often used in context of buying options ...