Bonds

By | 2017-09-13T13:03:17+00:00 13th September 2017|

A bond is a debt investment and can be issued by either a company or a local or national government. It is a way of raising capital. Investors buying a bond are effectively lending money to the issuer of the bond. Most bonds have a fixed term, at the end of which the investor will receive the original issue price, although some bonds (known as ‘perpetual bonds’) have no fixed maturity date. Interest is normally paid during the lifetime of the bond.