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Bonds operate quite like a house mortgages. The corporation or government agency that issues the bond is considered a customer. Investors who purchase those bonds, are considered the lenders. Investors buy bonds because they will receive interest payments on the financial investment. The corporation or government firm that issues the bond signs a legal agreement to pay back the loan and interest at a fixed rate and schedule.
This is the date on which the principal quantity of a bond also known as the "par value" is to be paid in full. A bond's maturity usually is set when it is provided. Bonds typically are referred to as being brief-, medium- or long-term. Normally, a bond that grows in one to three years is described as a short-term bond. https://foursquare.com/user/589565217 |
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