What is a bond?
What is a bond?
A bond is a debt issued by a legal entity (in this case a company) to finance itself with investors, called bondholders. Bonds are the debt-like financial instruments of the company issuing them. In the case of a bond issue, the company and the investor sign a bond contract formalising the loan and setting out, among other things, the maturity (duration of the loan), the interest rate and the other obligations of each party.
Related articles
- How do interest and coupons work?
- What is the duration or maturity of the loan?
- Who is the issuer?
Updated on: 05/04/2022
Thank you!