Bond

A bond is a fixed income investment in which an investor loans money to an entity (typically a government or corporation) for a defined period of time at a predetermined interest rate. In exchange for this loan, the entity promises to repay the investor the full amount of the loan (known as the “principal”) at the end of the bond’s term, along with periodic interest payments based on the predetermined rate.

Bonds are considered a relatively conservative investment option, as they typically offer a lower rate of return than riskier assets such as stocks. However, they are also generally considered less volatile and may provide a steady source of income for investors seeking to balance their portfolio.

Bonds are issued with a variety of terms and conditions, including their interest rate, maturity date, and credit rating. The interest rate, or coupon rate, is the rate at which the entity pays interest on the loan, usually expressed as a percentage of the bond’s face value. The maturity date is the date on which the bond’s principal is due to be repaid, while the credit rating reflects the entity’s creditworthiness and ability to repay the loan.

On this page, we list brokers and exchanges where you can invest in Bond markets.