Most
of us have borrowed money at some point of our life, whether as kids
from our parents or have asked the bank for a mortgage as grownups.
Companies and governments also need money as we do. A company needs to
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The
large organizations need far more money than the average bank can
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A bond
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investor).
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made at a predetermined rate and schedule. The interest rate is often
referred to as the coupon. The date on which the issuer has to repay
the amount borrowed is called the maturity date.
Bonds
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you'll get back if you hold the security until maturity.
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