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Bonds run really much like a home mortgages. The corporation or government company that provides the bond is considered a borrower. Investors who purchase those bonds, are considered the lending institutions. Investors buy bonds because they will get interest payments on the financial investment. The corporation or federal government company that releases the bond indications 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 likewise referred to as the "par value" is to be paid in full. A bond's maturity usually is set when it is released. Bonds frequently 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://www.toro-bookmarks.win/chuck-mcdowell-nashville-1 |
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