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A bond is simply a negotiable IOU, or a loan. Investors who buybonds are lending a specific sum of money (the principal) to thebond issuer—a corporation, a government, or some other borrowinginstitution—for a specified period of time (the term).Typically, thebond issuer promises to make regular payments of interest to theinvestor at a rate that is set when the bond is issued.This is whybonds are often referred to as fixed income investments.
Nội dung trích xuất từ tài liệu:
Fractionalization and the municipal bond market
