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Bond

Trading Term

A debt instrument issued for a defined period of time at a fixed interest rate with the purpose of raising capital by borrowing. A bond is a promise to repay the principal along with interest on a specified date. Types of bonds include corporate bonds, municipal bonds, and US Treasury bonds, notes and bills, which are collectively referred to as simply “Treasuries.” Bonds are generally referred to as fixed income securities and are one of the three main asset classes, along with stocks and cash equivalents.

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