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Bio: But if you do, you could get paid in spades. Still not sure about a few of the terms connected to bond financial investment? Examine out the glossary on the next page.

Bonds are loans made to big organizations. These include corporations, cities, and national governments. A private bond is a piece of a huge loan. That's due to the fact that the size of these entities requires them to obtain cash from more than one source. Bonds are a kind of fixed-income investment. The other types of investments are money, stocks, products, and derivatives.