Corporations and organizations buy debt when they have to raise money. These bonds will be issued at a reduced price.
How do bonds function?
Governments and companies issue bonds when they have to raise money. By buying a bond, you are technically lending the issuer money. In exchange, they promise to pay you back the face value of the debt on a specific date and to pay you interest on the bond at regular intervals, usually twice a year.
the sources of income for bonds:
Bonds are included under fixed-income securities, which also comprise a range of assets. They are debt obligations, which implies that the investor lends the government or a company a specific sum of money (the principal) for a defined period of time in exchange for obtaining
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