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Q » What are bonds and how do they work?
06 Dec, 2025
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A » Bonds are debt securities issued by entities like governments or corporations to raise capital. Investors lend money by purchasing bonds, and in return, they receive periodic interest payments, known as coupon payments, until the bond's maturity date. Upon maturity, the principal amount is repaid. Bonds are considered less risky than stocks, offering predictable income, but they can be subject to interest rate and credit risks.
06 Dec, 2025
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