What is a bond?
a. Bonds are debt instruments issued to investors. Their function is similar to loans in that a bond-issuer back in both interest and principal over the course of time.
b. Bonds are shares of ownership in public corporations. By purchasing shares of ownership, the investor agrees to pay the market value for the bonds and in return receives partial ownership in the corporation.
c. Bonds are accounts in which investors can choose to put their money. The investor agrees to deposit his or her funds into the bond, and the bond issuer will offer a determined interest rate while the funds are held.
d. Bonds that are created from any goods (such as gold, land, or vintage items) are expected to increase in value over time.