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Q. What do you mean by Bond?

Bond: A financial security that represents promise of its issuer (generally a company or a government) to repay a loan over a specified time period, at a specified rate of interest. Bond can then be bought and sold to other investors, over and over again. When rate of interest falls, bond prices rise (and vice versa) - Because when interest rates are lower, bond's promise to repay interest at specified fixed rate becomes more valuable.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M9579121

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