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Monday, July 25, 2011

Characteristics of Bonds

Bonds are known as fixed income or fixed interest securities because the interest payments are fixed in advance and paid on a regular schedule.

Following are the main characteristics of bonds:

1) A bond is a type of security that gives the holder a financial claim on the issuing company. When you invest in bonds, you are loaning money to the issuer, and you are entitled to receive regular


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