Glossary - ChicksX

Bond is a fixed-income instrument representing a loan made by an investor to a borrower, typically corporate or governmental.

Bond is a financial instrument where an investor lends money to a borrower, which can be a corporation or government. In return, the borrower promises to pay back the principal amount on a specified maturity date. They also pay periodic interest, known as coupon payments, to the investor. Bonds are considered a safer investment compared to stocks, offering predictable income. They can vary in terms of duration, interest rate, and issuer creditworthiness. In the crypto space, bonds can also refer to similar financial instruments issued on blockchain platforms, providing new opportunities for decentralized finance.