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What is a “bond”?
October 4, 2007 in Investing Basics
(This post is a part of the series on Basics of Finance and Investing.)
Like money market, a bond market is a debt instrument issued by both the US government and corporations to borrow fund from public. But there are two differences: a bond market has longer term maturity, and bond returns are not always fixed (and so it is not totally correct to categorize them as fixed-income securities).
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