What is a Bond?

Last Updated: 21 Mar 2017

A bond is a debt instrument issued by a borrower and registered into the name of the investor, with a fixed interest rate (called a coupon rate) and a specific maturity date.

Bonds are issued when the Government, local authorities or companies wants to raise funds in the medium to long term. Most bonds are usually issued for periods longer than one year.

Find out more with our introduction to fixed interest securities.

Interested in online share trading? Find out more at ASB Securities.

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