What are bonds?

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1 Answer 847
Rosemary Kelly

Answered 7 months ago

When companies and governments want to finance new projects, they often need to borrow money. They can do this by issuing bonds for money markets and investors to buy, effectively providing the capital for the loan.

Put simply, bonds are a way for organisations to borrow money by breaking a loan down into smaller parts or ‘bonds’ and making them widely accessible to lenders of all sizes.

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