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Bonds

Bonds are a type of fixed income investment that offer investors the opportunity to earn regular income in the form of interest payments. Bonds are essentially loans made by investors to a government or company. The issuer of the bond agrees to pay back the face value of the bond plus interest over a specified period of time.

Bonds can be issued by governments, corporations, or other organizations. The interest rate paid on a bond is determined by a number of factors, including the creditworthiness of the issuer and the length of time until the bond matures. Bonds with longer maturities typically offer higher interest rates to compensate investors for the added risk of holding the bond for a longer period of time.

One of the advantages of investing in bonds is their relatively low risk compared to other types of investments, such as stocks. Bonds are generally considered less volatile than stocks and can provide a stable source of income for investors.

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