Grandma and grandson a bond that can't be broken shirt

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Bonds Aren’t All That Complex.Despite the numerous titles used to describe them–fixed-income securities, debt instruments, credit securities–bonds are nothing more than IOUs in which the terms, pay-back date, and interest rate are carefully spelled out in a legal document. When you purchase a bond, you are in effect making a loan to the bond's issuer, who pays you interest for the use of your money, then returns your money when the bond reaches maturity you could consider this the expiration date.


Bonds Have a Reputation for Safety.This safe reputation is historically well-deserved. However, this safe reputation doesn’t mean that bonds are risk free. In fact, bond investors tend to worry about risks that stock investors dont worry about, such as the risk of inflation or liquidity risk.


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