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Bond

A loan that you give to a government or company in exchange for interest payments.

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An I.O.U. note: you lend money for a set time and get paid interest along the way.

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Real example

A 10-year Dutch government bond at 3% pays you €30 a year per €1,000 lent, then returns your €1,000 at the end.

⚠️ Educational only · Never financial advice · Read more