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.

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