THE PHRASE BOND INVET - myBlogd - Free Publishing and Advertising

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In the world of finance, a bond is a financial instrument that represents the bond issuer’s obligation to the holders. It is a kind of debt instrument in which the issuer owes the holders a debt and, depending on the conditions of the bond, is obligated to pay them interest (the coupon) or to return the principle at a later period, which is referred to as the maturity. The payment of interest is often made at predetermined periods (semiannual, annual, sometimes monthly). There is a high probability that the bond is negotiable, which means that the ownership of the instrument may be transferred via the middle market. Therefore, a bond is a kind of loan or iou: the person who holds the bond is the lender (also known as a creditor), the person who issues the bond is the borrower (also known as a debtor), and the coupon represents the interest. For the borrower, bonds provide the opportunity to get external cash for the purpose of financing long-term investments or, in the case of government bonds, for the purpose of financing current expenditures. It is important to note that certificates of deposit (cds) and short-term commercial paper are not regarded to be bonds but rather money market instruments. The primary distinction between the two types of instruments is the duration of the term of the instrument. Bondholders have a creditor position in the firm, while stockholders have an equity investment in the company (that is, they are owners). Though both bonds and stocks are considered to be securities, the primary distinction between the two is that bondholders have a creditor stake in the company (i.e. they are lenders). In contrast to stocks, which may remain outstanding for an endless period of time, bonds typically have a predetermined term, also known as maturity, after which the bond is repaid when it reaches its maturity. An exception to this rule is a bond that cannot be redeemed, such as consols, which is a perpetuity, which means that it does not reach maturity. Affiliate programs allow you to make one hundred pounds a day from the comfort of your own home. https://www.travelnow.com/templates/427831; click here for more information. Up to the 29th of July 2013, you will get a discount of seven percent on all ThinkPad models. summer7July is the summer coupon.