What Is A Bond?
A bond is a type of debt security and is a formal contract between a borrower and a bondholder. Subject to the terms of the bond, which is similar to a loan, the borrower owes interest and repayment of the principal amount is paid at a later date, often referred to as “maturity”.
U.S. government securities, corporate bonds and municipal bonds are among the types of bonds available. When looking to finance long-term projects a bond can sometimes be issued to help raise funds if the money is more than a bank can provide. A bond is basically an IOU given by a borrower to a lender.
There are many savings and investment options available. The right mix for you will depend on your age, income, tolerance for risk and timeline for needing funds. Bonds are one option that you can select. At Strategic Investment Advisors we offer a variety of products that can help you accumulate savings and access your money when you need it.
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