Bonds come in many forms and are a way for corporations or governments to raise money to fund their
spending. Bonds are a certificate of debt and the issuer has to repay the investor on the maturity date
(which is often 12 months or longer for corporate bonds). Bonds issued by governments are called
Government
Bonds (often referred to as ‘Gilts’ or ‘Gilt Edged Stock’ in the UK) and Corporate
Bonds are issued by corporations. There are also Bond Funds (collective investments)
and High Yield Bonds which carry more risk but with that, the potential of
higher returns. Investment bonds will usually pay fixed
interest twice per year and if the investor waits for the bond to mature they will receive a fixed repayment.
Bonds are also traded on the stock market where factors such as interest rates and market expectations
will affect their value.
For information on Bonds worldwide visit Wikipedia:
Bonds: http://en.wikipedia.org/w/index.php?title=Bond&oldid=45095121
Gilts: http://en.wikipedia.org/w/index.php?title=Gilt&oldid=34833718
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