Definition of Bonds

Bonds are medium-term and long-term debt securities that can be traded. Bonds contain a promise from the party that issued the shares to pay compensation in the form of interest in a certain period and pay off the principal at the end of a predetermined time, to the buyer of the bonds. Bonds are a fixed income stock investment that aims to provide a relatively stable growth rate of investment value with relatively more stable risk compared to stocks. This bond is only in the form of paper but has a valuable value. Basically a bond is a letter containing an acknowledgment and statement issued by the state government or private company that has debt and then handed over to the bond holder with a complete agreement to pay debt and interest before the time period. which has been specified