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Bond explained.

A debt instrument with payment and repayment terms. Credit, interest-rate, and liquidity risks can affect its value; a promise of repayment is not the same as a guarantee.

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Bond

A debt instrument with payment and repayment terms. Credit, interest-rate, and liquidity risks can affect its value; a promise of repayment is not the same as a guarantee.

Example: A fictional bond promises periodic interest and repayment of face value at maturity.

Watch for: Assuming a fixed payment means a fixed market price.

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