Bond

A bond is a type of loan that governments and companies can issue as a way to raise money. The life of a bond is fixed, and at the end of its existence (the maturity date) a bond will repay the amount initially paid for it (known as par value). Bonds are popular with income investors because they pay out interest on a regular basis until maturity.

Find out more about bonds in our How to choose and manage your own investments guide.

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