Stock market glossary
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Bond
A bond is a loan made to a government or a company: in return you receive interest (coupons) and, at maturity, your capital back.
Bonds are generally less risky than shares, but not risk-free: if the issuer runs into trouble it may not repay, and if interest rates rise the price of bonds already issued falls. The longer the maturity, the more sensitive the price is to rates.
💡 On Fanta-Trade you can add government and corporate bonds to your portfolio and watch how they react to news on interest rates, compared with shares.
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