Bond
A debt security issued by a government or company in exchange for interest.
Definition
A debt security issued by a government or company in exchange for interest.
Why this concept matters
It can provide more predictable income and diversify a portfolio.
What to watch
Its value changes with interest rates and the issuer’s ability to repay.
Simple example
A 3% bond generally pays €30 a year for every €1,000 invested.
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