Bond

A bond is a financial certicate that represents debt or a loan from the issuer of the document. A bond certificate contains the amount borrowed or the principal, the date when the buyer of the bond would get the full amount back or the maturity date and its interest rate. A bond certificate in the United States is typically issued in the amount of $1,000 with maturity dates ranging from a year to up to 10 years. Interest payments are normally paid semi-annually and must be maintained so that the issuer remains solvent before the full amount is repaid on its maturity date. When an investor simply cannot wait until the bond's maturity date, it can be sold at the bond market.

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