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11-10-2020 |
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Bonds run extremely much like a home mortgages. The corporation or government agency that provides the bond is considered a borrower. Investors who purchase those bonds, are considered the lenders. Investors buy bonds since they will get interest payments on the investment. The corporation or federal government company that issues the bond signs a legal contract to pay back the loan and interest at an established rate and schedule.
This is the date on which the principal quantity of a bond also referred to as the "par worth" is to be paid in full. A bond's maturity normally is set when it is issued. Bonds often are referred to as being short-, medium- or long-term. Typically, a bond that matures in one to three years is described as a short-term bond. https://thesourceweekly.com/author/holton9eiv/ |
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