A bond is a debt financial instrument, fixed or variable income, issued by a private or governmental entity to obtain financing.
It is an obligation on the part of the issuer (debtor), which undertakes to pay at maturity of the bond a specified amount to the purchaser, which includes the value of the bond plus interest.
Bonds offer a return to investors in the form of interest, which is a percentage of the nominal value of the bond and depends on the risk involved in its purchase. The higher the risk of default, the higher the interest.
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