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A conservative and typically guaranteed investment, a bond
is a debt instrument issued for a period
of one year or more. Bonds raise capital for the
issuer by borrowing money from investors. The federal government,
states, cities, corporations and many other types of institutions
sell bonds. With a bond note, the issuer is basically
promising to repay the principal along with interest
on a specified date, also known as the maturity
date.
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